Water-Energy-Food

Resource Book
for Mining
Assessing and Tracking the Benefits and
Impacts of Mining on Water-Energy-Food Security

Gabriel A. Huppé, Livia Bizikova and Dimple Roy

International Institute for Sustainable Development (IISD)

Darren Swanson
Novel Futures Corporation

Carter Borden
Centered Consulting International, LLC
© 2015 International Institute for Sustainable Development
Published by the International Institute for Sustainable Development

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Water-Energy-Food Resource Book for Mining

September 2015

Written by Gabriel A. Huppé, Livia Bizikova, Dimple Roy,

Darren Swanson and Carter Borden

IISD Resource Book | ii

Contents

CONTENTS

1. INTRODUCTION 1
1.1. Objectives of the Resource Book 1
1.2. Using the Resource Book 3

2. UNDERSTANDING WATER, ENERGY AND FOOD SECURITY IN THE

MINING CONTEXT 6
2.1. A Framework for Understanding Water, Energy and Food Security 7
2.3. Illustrative Benefits and Impacts of Mining on Water, Energy and Food Security 10
2.3.2. Access to Water, Energy and Food 16
2.3.3 Supporting Infrastructure – Built and Natural 18
2.3.4. Supporting Institutions and Policies 19
2.4. Case Study: Peru’s Water Issues and Mining’s Contribution 22
2.5. Case Study: Mali’s Social and Economic Issues and Mining’s Contribution 23

3. A REVIEW OF SUSTAINABILITY FRAMEWORKS AND INDICATORS

FOR THE MINING INDUSTRY 26
3.1. Sustainability Benefits and Impacts of Mining 30
3.2. System Changes and Security of WEF Supplies 31
3.3. The Origins of Mining Sustainability Practices and Reporting Frameworks 33
3.4. Review of Mining and Sustainable Development Indicators 39
3.5. Corporate Reporting 52
3.6. Sustainability Practice and Reporting Requirements at the Country Level 53

4. REVIEW OF INDICATORS FOR WATER, ENERGY AND FOOD SECURITY 57

4.1. Integrated Assessment of the WEF Nexus 57
4.2. Water Security Indicators 64
4.3. Energy Security Indicators 71
4.4. Food Security Indicators 77

5. THE WEF SECURITY ANALYSIS TOOL FOR MINING: ASSESSING THE

BENEFITS AND IMPACTS OF MINING ON WEF SECURITY AND
IDENTIFYING KEY ACTIONS AND INDICATORS 87
5.1. Overview of WEFsat-Mining 87
5.2. WEFsat-Mining Worksheets 89
5.3. Indicator Menus for Tracking WEF Security 91
6. ENGAGEMENT PRACTICES FOR INVESTING IN A WEF-SECURE
FUTURE 92
6.1. Overview of Stakeholder Engagement Practices in a Mining Context 93
6.2. Engagement Using “The 7 Questions to Sustainability” 97
6.3. Creating a Regional Landscape Investment and Risk Management Strategy for Water, Energy and Food Security 99
6.3.1. Stage 1: Assessing WEF Security 99
6.3.2. Stage 2: Envisioning Future Landscape Scenarios 100
6.3.3. Stage 2: Envisioning Future Landscape Scenarios 101
6.3. Stage 4: Transforming the System 101

7. SUMMARY 104

REFERENCES 105

ANNEX A. 111

FIGURES
Figure 1. Availability of Water Resources - A Central Role in the Water-Energy-Food Security Nexus 7
Figure 2. IISD’s WEF Security Analysis Framework Applied to the Assessment of Potential Mining Benefits and Impacts 10
Figure 3. Causality Chains – Peru Case Study 23
Figure 4. Causality Chains – Mali Case Study 24
Figure 5. Sustainability Impacts and WEF Security 28
Figure 6. Timeline of Initiatives: Mining Sustainable Development Events 33
Figure 7. Global-Level Drivers of Indicator System Development and Uptake Suggested by MMSD-Commissioned Report 39
Figure 8. Project-Level Drivers of Indicator System Development and Uptake Suggested by MMSD-Commissioned Report 41
Figure 9. GRI Mining and Metals Sector Reporting Trend (2008–2012) 52
Figure 10. The Corporate Value of Sustainability Practises and Reporting 53
Figure 11. Water Indicators are Correlated with Food Indicators 69
Figure 12. Incremental Levels of Energy Services and Access 71
Figure 13. Linkages Between Levels and Food Security Components 78
Figure 14. Categorization of Food Security Indicators on Three Levels of Analysis 79
Figure 15. IISD’s CRiSTAL Food Security and Resilience Assessment Framework 83
Figure 16. IISD’s WEF Security Analysis Framework Applied to the Assessment of Potential Mining Benefits and Impacts 89
Figure 17. The Seven Questions to Sustainability – How to Assess the Contribution of Mining and Minerals Activities 97
Figure 18. A Participatory Scenario Planning Process for Landscape Investment and Risk Management in
Water, Energy and Food Security

IISD Resource Book | iv

Contents

TABLES
Table 1. IISD’s Water-Energy-Food Security Analysis Framework 8
Table 2. Activities and Facilities Over the Full Life Cycle of the Mine Source: Adapted from PDAC (2006) 13
Table 3. Example WEF Security Benefits and Impacts from Mining 20
Table 4. Overview of the Linkages Between Select Mining Sustainability Impacts and WEF Security 27
Table 5. Possible Headline Indicator Categories for Monitoring Sustainability Impacts of Mining 30
Table 6. Possible Headline Indicator Categories for Monitoring System Changes
Source: Synthesis based on IISD’s review of indicator frameworks at the company level. 31
Table 7. Example Causality Chains for Sustainability Impacts and WEF Security 32
Table 8. Progress Following the Decade Since the MMSD Project 35
Table 9. Existing Frameworks in which Indicator Systems Have Been Developed 38
Table 10. Indicator Framework Coverage 42
Table 11. Mine-Level Sustainable Development Indicators on Environmental Issues 43
Table 12. Mine-Level Sustainable Development Indicators on Social Issues 46
Table 13. Mine-Level Sustainable Development Indicators on Economic Issues 50
Table 14. Water-Energy Security Nexus 59
Table 14. Water-Energy Security Nexus 60
Table 15. Food-Water Security Nexus 60
Table 16. Food-Energy Security Nexus 61
Table 17. Water Security Matrix 66
Table 18. Categories of Indicators to Understand the Water Sector 67
Table 19. Summary of Water-Related Issues at Different Mining Stages 68
Table 20. The Energy Ladder. Source: Sovacool (2013a) 72
Table 21. IEAE/IEA Indicators for Sustainable Energy Development 73
Table 22. Dimensions, Components and Metrics Comprising National Energy Security Source: Sovacool (2013a) 74
Table 23. Indicators to Measure the Determinants of Security across Many Aspects of the Food System 77
Table 24. Indicators for Risk Analysis and Early Warning 80
Table 25. Indicators on Indigenous Peoples’ Food Security 82
Table 26. Resilience Indicators for the Core Food Systems’ Elements Clustered by their Focus 85
Table 27. Process-Based Indicators that Showcase the Design and Implementation of Policies and Programs Aiming
to Promote Food Security 86
Table 28. Best Practices for Stakeholder Engagement 95
Table 29. Engagement of Communities throughout the Mine’s Life Cycle 96
ABBREVIATIONS
BOD Biochemical Oxygen Demand
DPSIR Drivers-Pressures-States-Impacts-Responses
EITI Extractive Industry Transparency Initiative
FRM Framework for Responsible Mining
GMI Global Mining Initiative
GRI Global Reporting Initiative
ICMM International Council on Mining and Metals
IGF Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development
IRMA Initiative for Responsible Mining Assurance
MAC Mining Association of Canada
MCA Minerals Council of Australia
MCEP Mining Certification Evaluation Project
MMSD Mining, Minerals and Sustainable Development
MPF Mining Policy Framework
NGO Non-Governmental Organization
OECD Organisation for Economic Co-operation and Development
PDAC Prospectors and Developers Association of Canada
WEF Water-Energy-Food
WEFsat Water-Energy-Food security analysis tool for mining

IISD Resource Book | vi

1. Introduction

1. INTRODUCTION

T he increase in demand for minerals and metals

by 2030 will drive mining developments to
new frontiers in the coming decades. Demand for
metals is expected to grow 250 per cent between
2005 and 2030, according to Organisation for
Economic Co-operation and Development (OECD)
estimates (Clay, 2004), while other forecasts
predict that global ore extraction will increase 37
per cent by 2020, from 8 billion tonnes to 11 billion
tonnes a year (Ellen MacArthur Foundation, 2012).
Demand for mineral resources like steel, copper
and aluminum is expected to increase 90 per cent,
60 per cent and 50 per cent, respectively, between
2010 and 2030 (Lee, Preston, Kooroshy, Bailey,
& Lahn, 2012). However, with the exhaustion of
easily accessible ore deposits, the mining industry
is venturing into increasingly perilous terrain.
The depletion of high-quality ores represents
a particular challenge, as the exploitation of
lower-grade ore deposits may entail significantly
larger environmental costs. Moreover, many of
the remaining reserves slated for exploration
or exploitation are located in under-developed,
vulnerable regions of the world—which suffer from
a lack of infrastructure and where an unstable
political climate often prevails, intensifying the
risks of geopolitical events and local conflicts.
With the growing importance of the mining
sector as the major economic driver in many
countries, there is increasing interest in better
understanding the contributions of mining to the
overall environmental and social conditions of
affected regions. The Intergovernmental Forum
on Mining, Minerals, Metals and Sustainable
Development (IGF), consisting of 49 member
countries, has most prominently put forward a
call to governments around the world to gradually
implement socioeconomic and environmental
safeguards, as specified within the IGF Mining
Policy Framework (IGF, 2013). In particular,
negative impacts on the quality and quantity
of water, biodiversity and ecosystems are to be
mitigated through adequate technologies and
processes throughout the mining cycle, as required
and enforced by governmental authorities. The
socioeconomic benefits of mining can be ensured
by promoting community and occupational health,
optimizing local and national employment and
business development.
While progress has been made in integrating
sustainable development into mining contexts,
there is still considerable need to better
understand the impacts and benefits of mining
operations on communities. Water-energy-food
(WEF) security has been recently introduced
as a novel concept to account for community
well-being and help operationalize sustainable
development in a practical and actionable manner
(Hoff, 2011). The WEF security concept gained
prominence amidst the food crises of 2008 and
2011, and ongoing energy and water shortages
in countries around the world. It is increasingly
recognized that current and intensifying resource
pressures can, by way of a deterioration in water,
energy and food production and consumption
systems, hamper human and economic
development, create social and geopolitical
tensions, and cause further environmental
degradation (World Economic Forum, 2011;
European Report on Development, 2012).
1.1. OBJECTIVES OF THE
RESOURCE BOOK
This Resource Book aims to provide a
comprehensive source of information for
assessing and tracking the benefits and impacts
of mining on community and regional-level WEF
IISD Resource Book | 2
1. Introduction
security. It draws on a comprehensive review
of current practice and, building on IISD’s 2013
water-energy-food assessment framework,
introduces the new WEFsat-Mining, a Microsoft
Excel-based workbook designed to guide mine
operators, community organizations and policy-
makers through an assessment of: (i) the current
availability and accessibility of key WEF sources
and their supporting infrastructure (built and
natural) and supporting institutions and policies;
and (ii) the potential benefits and impacts of
mining operations during both full operations
and closure; (iii) the actions needed to realize the
potential benefits of mining and mitigate impacts;
and (iv) the indicators necessary to monitor and
report on progress toward WEF security.
The specific objective of this Resource Book are
to:
1. Provide a thorough overview of existing
frameworks and indicators for assessing and
monitoring the sustainable development and
WEF security impacts of mining operations
as put forth in the literature and non-
governmental organizations (NGOs) such as
the International Council on Mining and Metals
(ICMM) Sustainable Development Framework
and the Intergovernmental Forum on Mining,
Metals and Sustainable Development’s (IGF)
Mining Policy Framework (MPF);
2. Outline specific linkages between mining
operations and WEF security at the
community level and provide guidance on
specific policies, actions and indicators to
effectively monitor WEF security linkages in
the mining context
3. Introduce a practical tool for assessing
community–mine linkages in the context of
WEF security, and in particular, for identifying
actions to realize the benefits and mitigate
the impacts of mining on WEF security at the
community and regional levels.
1.2. USING THE RESOURCE BOOK
In this resource book you will find:
Section 1 – Introduction
Section 2 – Understanding WEF Security in the
Mining Context. Presents a summary of our WEF
security framework along with a suggested WEF
security assessment process, and illustrative
examples of the potential benefits and impacts of
mining on WEF security.
Section 3 – A Review of Sustainability Indicator
Frameworks for the Mining Industry. Reviews
indicator frameworks on mining’s contribution to
sustainability issues along with the approaches
currently being used for corporate reporting and
country reporting.
Section 4 – A Review of Frameworks and
Indicators for WEF Security. Reviews indicators
for integrated WEF security and indicators for
its individual components: water security, energy
security and food security.
Section 5 – Introduction to WEFsat-Mining.
Provides guidance on assessing WEF security
status, assessing the influence of mining, and
identifying actions and indicators.
Section 6 – Engagement Practices For
Investing in a WEF-Secure Future. Underlines
the importance of engagement practices and a
structured approach to co-creating a regional
investment and risk-management strategy for
WEF security.
Annex A – Compilation of example WEF
Security Indicators. Example indicators are
organized by WEF availability, accessibility,
supporting infrastructure and supporting
policies.
In reading this resource book you will gain the
necessary contextual and conceptual information
for participating in assessments that apply
WEFsat-Mining. For guidance on how to facilitate
a participatory assessment using the tool, see
the separate WEFsat-Mining Tool User Guidance
Manual.

This resource book contains a comprehensive

review of indicators for tracking WEF security
in a mining context, and can be used by mine
operators, community organizations and policy-
makers to gain initial insight into the creation of a
monitoring system for understanding the influence
of mining operations on community or regional
WEF security.

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2. Understanding Water, Energy and Food Security in the Mining Context
 2. UNDERSTANDING WATER, ENERGY
AND FOOD SECURITY IN THE MINING
CONTEXT

W ater-energy-food (WEF) security is a

concept that accounts for the interlinkages
between water, energy and food systems. In order
to understand how mining affects these three
interlinked systems, it is necessary to define the
principle constituents that form the basis of WEF
security. These are: (i) Availability of WEF sources;
(ii) Access to WEF sources; and the existence,
efficiency and effectiveness of: (iii) Supporting
infrastructure; and (iv) Supporting institutions and
policies. This section presents a comprehensive
conceptual WEF security framework and provides
a window to how mining interfaces with this
framework. It concludes with two illustrative
case studies centering on the high-level
impacts of mining in Peru and Mali, which show
both positive and negative WEF outcomes. By
using this framework, policy-makers and mine
operators should be better able to maximize their
contribution to WEF security throughout the life
cycle of mining projects.
The World Economic Forum has consistently
ranked water, energy and food security issues
among the top global risks facing governments
and businesses around the world, along with
other risks including terrorism, cyber-attacks and
fiscal crises (for examples, see World Economic
Forum, 2015). Making matters even more complex
is the realization that water, energy and food
security issues are inherently comingled, with the
availability of water resources playing a central
role (see Figure 1; also Hoff, 2011). In this context,
the following is noted: “While water is a renewable
resource, and globally there is enough water to
feed a growing, and more wealthy population,
demand temporarily or permanently outstrips
availability in more and more regions of the world,
most prominently in the bursting of regional ‘water
bubbles’” (Hoff, 2011, p. 16).

“ A rapidly rising global population and growing prosperity are putting unsustainable pressures on
resources. Demand for water, food and energy is expected to rise by 30-50% in the next two decades,
while economic disparities incentivize short-term responses in production and consumption that
undermine long-term sustainability. Shortages could cause social and political instability, geopolitical
conflict and irreparable environmental damage. Any strategy that focuses on one part of the water-
food-energy nexus without considering its interconnections risks serious unintended consequences.
”
(World Economic Forum, 2011, p. 7 emphasis added)

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2. Understanding Water, Energy and Food Security in the Mining Context

2.1. A FRAMEWORK FOR of energy, and processing of food; (c) storage of

water, energy and food supplies; (d) modes of
UNDERSTANDING WATER, ENERGY
distribution of water, energy and food supplies;
AND FOOD SECURITY and (e) markets for water, energy and food.
Motivated by a need for a practical planning
Central to the analysis framework is an
and decision-support process for landscape
understanding of how households (and
investment and risk management, IISD in 2013
communities of households) gain access to
developed an analysis framework for WEF
water, energy and food. Is it mostly through their
security. The IISD framework was informed by
own purchasing power (i.e., earned income), as is
a comprehensive literature review. It enables a
typically the case in higher-income households
place-based analysis of four main components:
and countries? Or is access gained through
access, availability, supporting resources, and
a combination of purchasing power (income,
supporting policies, and each in the context of a
remittances from family members in other
region’s water, energy and food supply (Bizikova et
countries, credit), aid, self-production, and
al., 2013).
barter, as is often the situation in lower-income
households and countries?

It is then necessary to understand the types of

Water supporting infrastructure relied on to ensure
Food
Supply
Security the access and availability of water, energy and
Security
food. Supporting infrastructure has two types:
Available (a) built infrastructure, including communication,
Water
Resources transportation and waste/sanitation systems; and
(b) natural infrastructure, including the ecosystem
goods and services associated with erosion
control, storm protection, water purification,
biological control, air quality maintenance and
pollination.
Energy
Security The final component of the analysis framework
requires identification of institutions and policies
that support the natural and built infrastructure
needed to ensure access and availability of water,
Figure 1. Availability of Water Resources - A Central Role in the Water-
food and energy sources in a community and
Energy-Food Security Nexus. Source: Hoff (2011)
region. This component is further broken down into
two categories, namely: (a) supporting institutions,
The framework begins with an analysis of how including utility boards, user associations and
water, energy and food are made available to resource co-ops, education and training, safety
households and communities. This requires oversight, law enforcement and security; (b)
consideration of five aspects, including: (a) supporting policies and plans relating to resource
sources and production (i.e., surface and use, climate change adaptation, disaster recovery
groundwater, sources of energy and food and risk management, and R&D and innovation.
production); (b) treatment of water, conversion
 FRAMEWORK FOR ASSESSING WATER, ENERGY AND FOOD SECURITY

SECURITY CATEGORY SECURITY COMPONENTS TO BE ASSESSED FOR WATER, ENERGY AND FOOD SOURCES

Availability Uses

Processing

Storage

Distribution

Markets
Access Purchasing Power (livelihood income, remittances, credit)

Aid (direct provision, safety nets, subsidies)

Self-production (water wells, off-grid power, individual/community gardens)

Barter
Supporting Infrastructure Built Infrastructure (transportation, communication, waste removal)

Natural Infrastructure (ecosystem services such as: erosion control, storm protection, water
purification, biological control, air quality maintenance, pollination)
Supporting Institutions and Institutions (utility boards, user associations and resource co-ops, education and training,
Policies safety oversight, law enforcement and security)

Policies & Plans (resource use, climate change adaptation, disaster recovery, risk management,
research, development [R&D], and innovation)

Table 1. IISD’s Water-Energy-Food Security Analysis Framework.

Source: Bizikova et al. (2013)

2.2. ASSESSING WATER, ENERGY Figure 2 presents the engagement and

AND FOOD SECURITY IN THE
MINING CONTEXT
Population growth and economic prosperity are
increasing the demand for minerals and other
natural resources in unprecedented ways, posing
the risk that intense pressures on the natural
system could put WEF security for a nation’s
population at risk. At the same time, however,
mining developments also present significant
opportunities to improve WEF security in a
community or region. IISD’s WEF security analysis
framework can be applied to help identify the
potential benefits and impacts that a proposed or
existing mining operation has on WEF security.
assessment process that can be applied in
specific mining-related contexts to highlight key
issues and direct attention and investment to
improve WEF security using a Microsoft Excel-
based WEFsat-Mining. The first stage assesses
the current status of each of the framework
components for the community (or aggregation
of communities) in question. The second stage in
applying the framework includes identifying all
of the possible benefits and impacts that each
of the mining components (e.g., mine operations,
ore processing, general operations) might have
on each of the WEF security components. This
necessitates the identification of all the individual
mining components comprising the proposed or

IISD Resource Book | 8

2. Understanding Water, Energy and Food Security in the Mining Context
existing mining development during operation and
closure phases.
After gaining an understanding of the potential
mining benefits and impacts on each of the
WEF security components, the next stage of the
assessment includes identifying specific actions
that are necessary to help realize the potential
benefits associated with mining’s influence, or
mitigate the potential impacts.
Two additional elements are integral to all stages
of the above assessments. The first is engagement
with relevant stakeholders. Addressing the
assessment questions is only possible through
iterative deliberation with persons who are
SECURITY
ENGAGEMENT AND ASSESSMENT
COMPONENTS
Availability
Access
I. Status and linkages
Supporting
Infrastructure
Supporting Institutions
and Policies
Figure 2. IISD’s WEF Security Analysis Framework Applied to the Assessment of Potential Mining Benefits and Impacts
2.3. ILLUSTRATIVE BENEFITS AND
IMPACTS OF MINING ON WATER,
ENERGY AND FOOD SECURITY
Large-scale mining operations represent a
significant development activity for any region,
with myriad benefits and impacts on existing
economic, social and environmental conditions.
During its life cycle, a mining project consists of
several integrated facilities and activities. These
activities are spread out across different stages
of the mining project (see Table 2). The influence
involved in implementing mining operations
and are impacted by them. Second, the ability
to monitor and track changes in WEF security
is critically important for ongoing adaptive
management and continuous improvement
in maintaining and improving WEF security.
Therefore, this framework and its supporting
WEFsat-Mining is designed to assist stakeholders
in identifying practical indicators for measuring
and tracking progress toward WEF security in
relation to the availability and accessibility of key
water-energy-food sources, the potential benefits
and impacts of mining operations, and the
specific actions necessary to leverage benefits
and mitigate impacts.
III. Actions to realize
II. Potential mining benefits
benefits and mitigate
and impacts
impacts
INDICATORS AND MONITORING
of mining on WEF security therefore changes
across these different stages.
• Exploration: The purpose of the exploration
phase is to find new sources of metal or
useful minerals (Prospectors and Developers
Association of Canada [PDAC], 2006). It
consists of identifying large areas containing
ore deposits that could be developed as
a resource. PDAC, an association for the
Canadian mineral exploration industry, has
a tool called e3Plus, which aims to ensure a
high level of social, environmental and health
IISD Resource Book | 10
2. Understanding Water, Energy and Food Security in the Mining Context

and safety performance during exploration benefits accruing to the community due to
activities. These include protecting culturally employment, salaries, local procurement and
important sites, minimizing waste pollution training.
and conserving biodiversity. The first contact
• Closure: The closure phase consists of
with communities is made during this phase,
ensuring the orderly, safe and environmentally
and it is important to start off the mining
sound conversion of the mine to a closed state
project with sufficient engagement. Although
(PDAC, 2006). Following commercial resource
it may not be necessary to undertake
extraction, decommissioning and rehabilitation
environmental baseline studies at this stage,
activities are needed to remove or mitigate
many companies choose to assess cultural
environmental and human health hazards,
areas and the environment to inform their
re-vegetate, and restore the environment
operations.
so that the area, when abandoned, does
• Development: In the development phase, the not represent continuing risks (World Bank,
purpose is to learn about the potential value 2010b). Because the rules for closure and
of the deposit, and determine if it can be reclamation vary across countries, many
profitably mined all while benefiting the region companies follow the World Bank and
as well as the company (PDAC, 2006). Many International Finance Corporation guidance
of the sustainability issues faced are similar in order to be able to access project financing
to those in the exploration phase, except they from these organizations. However, companies
may become more important as development such as Rio Tinto, BHP Billiton and Kinross
progresses. Sufficient baseline studies and Gold have also developed internal standards
assessments are required in order to obtain that require that specific procedures be
mining permits. The company must also begin followed. For example, BHP Billiton’s internal
to negotiate agreements with communities. closure standard is mandatory for all projects
New sustainability impacts will occur in and has specific requirements for closure plan
association with the construction of facilities development and formal reviews.
on site, with issues such as noise, land
Table 3 provides examples of potential benefits
development and pollution which can disturb
and impacts of mining on regional and local WEF
wildlife.
security. These are elaborated in the sections that
• Operations: A mine enters the operation phase follow.
when earth and/or rock is being excavated
from the ground and the processing plant
produces a saleable product (PDAC, 2006).
When rock is excavated, it is sent to the
processing plant to separate the waste
rock from the ore. Waste storage facilities
such as tailings ponds retain the large
amount of waste created in this process. The
sustainability impacts occurring at this stage
are very important. Waste, including heavy
metals and chemicals, can contaminate water
sources. There is also the potential for many
IISD Resource Book | 12
2. Understanding Water, Energy and Food Security in the Mining Context
EXPLORATION
7-10 YEARS
Maximizing contributions to sustainable development throughout the project life cycle
Prospecting: Mineral deposits
are identified through basic
surveying, sampling, drilling,
and mapping of minerals.
Mining claim staking: A
mining claim is staked, giving
the prospector an exclusive
right to explore the area.
Assessment reports submitted
to government body.
Detailed exploration:
Geophysical and geochemical
surveys, and diamond drilling
is undertaken to explore
deeper underground.
Sampling and drilling: A
costly drill program consists
in bringing up cored rock
(drilled core) from 100 metres
underground, and analyzing
these in the lab.
Environmental baseline work:
Cultural areas, soil, vegetation,
wildlife and water analysis is
undertaken.
Preliminary deposit
evaluation: All information
is reviewed to determine
feasibility of a mine.
Table 2. Activities and Facilities Over the Full Life Cycle of the Mine
Source: Adapted from PDAC (2006)
DEVELOPMENT
5-10 YEARS
Detailed drilling: Drill core
samples are used to determine
exact shape and size of
deposit.
Bulk sampling: Large
samples enable metallurgical
characteristics to be
determined.
Environmental baseline
studies: The state of the
environment is determined.
Feasibility studies:
Compilation and review
of reports on the legal,
geological, economic,
engineering, and site data.
Closure and reclamation plan:
Details how the site will be
cleaned and restored following
mine operations.
Permitting: Environmental
assessments are required to
obtain permits for further
work.
Negotiation of agreements:
Agreements between the
community and mining
company are negotiated.
Construction: Facilities such
as a processing plant and
related infrastructure are
developed.
OPERATION
5-30 YEARS
Hiring: Permanent employees
and contractors are hired.
Some companies will have
agreements (e.g., IBAs) to work
with and hire local candidates
and aboriginals.
Training: All new employees
receive training so that
they understand operations
and how to stay safe. Other
trainings such as cross-
cultural issues, trades, literacy
and life skills may also be
offered.
Commissioning: Facilities,
processes and equipment are
tested to see if they perform
well before going into full
production.
Production: Waste rock is
mined away to recover the
ore. Once retrieved, ore is
sent to the processing plant
for processing. When market
conditions are favourable,
production is increased.
Mine expansion: Expansions
occur by enlarging the mine,
opening more mine areas,
buying more equipment, hiring
more people, upgrading the
processing plant, and doing
more exploration work.
CLOSURE
2-10 YEARS
Shut-down: Employees are
progressively laid off, but a
small labour force is kept
to shut down equipment. A
formal review of the mine
closure plan is carried out
and any needed changes are
submitted to the government
regulators for approval.
Various stakeholders are
notified as to the shutting-
down of operations.
Decommissioning: Small
crews take apart the mining
and processing facilities and
equipment.
Reclamation: Disturbed land is
restored as closely as possible
to its original condition.
Post-closure: Environmental
activities continue in order to
fully reclaim the affected land
and monitor the success of
reclamation activities.
IISD Resource Book | 14
2. Understanding Water, Energy and Food Security in the Mining Context

2.3.1. AVAILABILITY OF WATER, long-term control and treatment technologies

ENERGY AND FOOD
For a given mining project there exist a range of
potential benefits and impacts related to both
the quantity and quality of water, energy and food
sources.
Sources of water, energy and food. Water
withdrawals from surface water and groundwater
sources for mining processes can reduce
water availability in water-scarce areas. And
the release of chemicals, heavy metals, and
excessive sediment into the environment and its
mobilization into water streams and groundwater
can affect the appropriateness of water sources
for human or economic use. In relation to energy, the construction of
One of the most significant potential mining
impacts on water resources is acid mine drainage
(AMD). Mining projects extract ore containing
sulphides, which require appropriate processes
to prevent, minimize and control acid drainage.
These projects require an early evaluation of the
acid-generating potential of these materials,
the development of effective strategies to
minimize the oxidization of sulphides, and, where
the acid drainage is unavoidable, the use of
(Murphy, Taylor, & Leake, n.d.). The Rio Tinto
mining company has developed an environmental
standard to minimize acid drainage and related
risks through a hazard-screening protocol and
a risk-review protocol. The hazard-screening
protocol aims to assess all hazards created by the
release of sulphide oxidation products, and ranks
these hazards based on the chemical and physical
setting of each site. The risk-review protocol
covers 11 key performance areas (e.g., waste and
rock characterization, materials management)
for managing acid drainage and focuses on how
mining operations are to manage these hazards
according to good management practices.
infrastructure to meet the electricity demands of
mining operations can lead to increased energy
supply for communities in the vicinity of the mine. At
the same time, the increase in demand for electricity
from mine operations can put a strain on the
existing electricity supply, making it less reliable.
In the context of land and food resources, mining
often competes with agriculture and other land
uses related to food production: mining can also
change soil composition and regimes due to mine

Box 1. Site-Level Water Management Plans

The development of a site-level water management plan that is informed by stewardship priorities at the
catchment level is one of the first steps in managing water sustainably, according to ICMM (2012). These
plans should aim to promote water-use efficiency by minimizing water use, and reusing and recycling
it where possible. Companies should also strive to maintain long-term water balance throughout the
project life cycle. Furthermore, the quality of discharged water should be monitored and controlled
to minimize environmental impacts (ICMM, 2014). For example, Anglo American, a United Kingdom-
based mining company, has a corporate water strategy that is guided by the four following concerns:
water efficiency, water security, water risk and liability and stakeholder engagement (ICMM, 2012). In
implementing the strategy, it developed water standards that specifically address these concerns across
the life cycle of projects. Anglo American often develops site-level water action plans (WAPs) that take
local catchment priorities into account, and operationalize these aspirations in the context of specific
local needs.
tailings and other waste generated. In addition,
chemical and/or heavy metal constituents of
concern from mine waste facilities can potentially
enter flora and fauna and animals, rendering these
unsafe for human consumption.
Uses of water, energy and food. Mining introduces
an additional competing use for water, energy and
food in the region. This can potentially put a strain
on already over-allocated resources in a region.
Markets for water, energy and food. With
new mining development there is the potential
for increased demand for water and water
infrastructure, which can put upward pressure on
the household cost of water services. Electricity
costs could also potentially either increase or
decrease due to regional mining operations.
Food prices can potentially increase or decrease
depending on the mine’s influence on local
population and volume of food purchases during
operation and after closure.
2.3.2. ACCESS TO WATER, ENERGY
AND FOOD
Occupational communities derive important
financial benefits from their employment in
mining and affiliated industries. Such benefits
can substantially contribute to the reduction of
poverty, and thus alleviate hunger, malnutrition
and disease.
Purchasing power: Although mining rarely
contributes to more than 1.5 percent of total
national employment (ICMM, 2012), the jobs
that mining projects create are usually well
paid relative to national income levels (ICMM,
2014). Mining jobs often have health, pension
and other benefits. In addition, for every mining
company employee, there are typically two to
four employees elsewhere in the economy that
derive significant employment and income
from mining activities. For example, a mining
project operated by Vale in Brazil’s Para State
spent an average annual amount of USD700
million on local procurement from businesses
such as manufacturing suppliers and other
agencies between 2004 and 2008 (ICMM, 2012c).
Thus, supplier development projects from local
businesses can multiply the financial benefits that
mining projects can have on communities. Local
contractors can be hired for indirect activities
such as constructing roads, building houses and
the various businesses needed to serve the needs
of occupational communities such as food and
clothing.
Community aid and investments: Although
employment and income are the primary
financial benefits of mining, compensation
payments for land and other impacts can be
significant. Community development trust funds
can also be important. For example, in Lao PDR,
two mines, MMG Sepon and PBM Phu Kham
Copper-Gold Operation, respectively contribute
USD500,000 and USD300,000 annually to
a community development trust fund that is
spent in accordance with development priorities
(ICMM, 2011). In addition, between 2003 and 2011,
MMG Sepon distributed nearly USD3 million on
community development programs (ICMM, 2011).
Self-production of water, energy and food. The
establishment of a mine can potentially lower
the local water table and affect the productivity
of household and community water wells. The
clearing of forests for mining can reduce local
wood fuel sources, and land acquired for mining
could potentially result in a reduction in locally
grown food.
Bartering. For households that rely on local trade
for their water, energy and food resources, there is
the potential for disruption of bartering relations
depending on how divisive the mining operation is
among the local population.
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2. Understanding Water, Energy and Food Security in the Mining Context
2.3.3 SUPPORTING
INFRASTRUCTURE – BUILT AND
NATURAL
There are different types of built and natural
infrastructure that support WEF security, such
as communication, transportation, sanitation
and landscape (such as wetlands and drainage)
systems. These can be influenced both positively
and negatively by mining development.
Infrastructure investments and services provided
either primarily for the needs of the mine or for
public benefit through commercial or in-kind
arrangements can provide a significant boost
for local communities. These infrastructure
investments can help fill an important void in
underserved communities, and can be critical
to human development outcomes such as the
reduction of poverty and overall well-being.
Built infrastructure: Mining projects often require
significant investments in basic infrastructure
such as roads, bridges, sewage, water supply
and electricity, which can also benefit local
communities. Recent studies have estimated
that 60 per cent to 80 per cent of the costs of
mining projects are due to infrastructure (World
Economic Forum, 2014). But they also engage
in developing infrastructure provided primarily
for public benefit such as schools and hospitals.
For example, AngloGold Ashanti’s mine project
in Obuasi, Ghana, has built 10 schools and one
hospital in the municipality (ICMM, 2007a). The
hospital built by AngloGold Ashanti is the biggest
and best equipped in the municipality.
Natural infrastructure: With new mining
development there exists a range of potential
impacts on natural infrastructure that supports
sources of water, energy and food. For example,
the loss of vegetation could increase soil erosion
and decrease water quality locally and regionally.
The potential loss of wetlands could result in a
decrease in the natural water treatment potential
of the landscape, resulting in negative impacts on
local and regional drinking water resources. The
potential loss of local vegetation due to the mine
footprint, and/or contaminants from mine waste
can impact the mortality of pollinating insects.
And in coastal areas, the potential loss of coastal
zone vegetation (i.e., mangroves) could lead to
increased weather-related risks to water, energy
and food infrastructure.

Box 2. Biodiversity Strategies

Several mining companies now implement strategies to achieve a net positive impact on biodiversity
through a mitigation hierarchy that first seeks to avoid impact where possible, minimize the
impacts that are unavoidable, rehabilitate affected areas, and, finally, offset residual impacts. Many
companies also abide by their commitments to avoid mining in “No Go” areas, which are places where
any harm to biodiversity would be disallowed (e.g., UNESCO World Heritage sites). For example, in
2004 Rio Tinto made a public commitment to biodiversity conservation and the goal of achieving a
“net positive impact” on biodiversity (ICMM, 2010a). In achieving this objective, the company works
with formal partners (e.g., Birdlife International, Fauna & Flora International) and internal biodiversity
planning experts to develop guidance materials for use by its operations sites. A biodiversity
assessment protocol is used for assessing the biodiversity value of Rio Tinto’s land and surrounding
area to prioritize action. Where biodiversity value is assessed as being “high” or “very high,” a
Biodiversity Action Plan that elaborates on specific restoration offset and avoidance measures is
required. The company is also looking into having its claims of “net positive impact” independently
verified in the future.

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2. Understanding Water, Energy and Food Security in the Mining Context

2.3.4. SUPPORTING INSTITUTIONS Supporting policies and plans. With mining

AND POLICIES
There exists a host of institutions (e.g.,
government agencies, community networks) and
public policies that play a role in supporting WEF
security in any given region, and as is the case
with supporting infrastructure, there can be both
benefits and impacts on these due to mining
development.
Supporting institutions. With mine development
and operation, there will be an increased demand
for tradespersons—this could put a temporary
strain on local and regional education institutions
as they strive to meet the new demand. With any
new type of significant development, there will be
an increased need for monitoring and enforcement
of water and land-use regulations, and this can
stretch already understaffed public agencies.
And from the perspective of law enforcement and
security institutions, the additional water, energy
and food infrastructure that comes online as a
result of a new mining operation may become
targets for terrorist activity, requiring additional
security services.
development, existing water and land allocation
policies may need to be revised to account for new
demand following the introduction of mining. This
can create tensions in already resource-scarce
regions.
The potential impact of mining on regional and
local ecosystems could increase community
vulnerability to climate change in relation to the
availability of water, food and energy. From a
benefits perspective, corporate investment in local
initiatives can improve the adaptive capacity of
households and economic sectors in the region
to deal with stresses such as climate change and
market price volatility.
Mine extraction facilities (open pits, underground
shafts) and mine waste facilities (waste rock piles
and tailings dams) will be vulnerable to disaster
in earthquake- and flood-prone regions, and
therefore will require updates to local disaster
recovery and risk-management plans and services.
There is also the potential for mine-related
investment to result in an increase in research
and development opportunities for water, energy
and food technologies regionally, as well as the
potential for new products and services to be
introduced locally.

Box 3. Education Benefits from Mining Operations

The education and training practices of mining companies can be significant. Employee training
programs typically range from technical mining skills and health and safety to more administrative
and management skills focused. Some of this training may be targeted to the specific professional
needs of employees such as project management training for high-level managers and woodworking
for carpenters and other technical staff, or it can be more generic and accessible, such as language
training for any employee. Community development projects can also contribute to human capital.
For example, in Ghana, AngloGold Ashanti has funded various rural livelihood initiatives consisting
of edible snail cultivation for domestic and export markets, guinea pig breeding for domestic and
West African markets, and aquaculture production (ICMM, 2007a). These projects enable local
communities to gain new skills that allow them to exploit market opportunities.
 POTENTIAL MINING BENEFITS AND IMPACTS ON…
WEF SECURITY
COMPONENT
WATER SECURITY ENERGY SECURITY FOOD SECURITY
Quantity: The construction Quantity: The destruction
Quantity: Water withdrawals from
of energy infrastructure to of aquatic habitats due to
surface and groundwater sources
meet the energy demands siltation and sedimentation
for mining processes can reduce
of mining operations can can reduce fish stocks.
water availability in water-scarce
lead to increased energy Mining activities can
areas.
supply for communities. supplant croplands, reducing
Sources locally grown food.
Quality: The release of chemicals
Quality: The increase in
and heavy metals into the
demand for electricity Quality: Chemical and/or
environment and their mobilization
from mine operations can heavy metal residues along
into water streams can affect the
put a strain on the existing the food chain in fauna and
appropriateness of water sources
supply, making it less flora can render these unsafe
for human or economic use.
reliable. for human consumption.

Uses Mining introduces an additional competing use for water, energy and food in the region.

Drinking water treatment facilities

AVAILABILITY

may need to be expanded to Increased demand on Potentially increased demand

Processing meet additional demand of mine electricity conversion on regional food processing
employees as well as runoff from stations. plants.
the mine site.
Introduced storage facilities
(e.g. reservoirs) may increase or Potential competition for
Storage NA
decrease water availability during warehouse storage facilities.
dry seasons.
New electricity distribution
Mine construction and
Potential for new water distribution lines that are built to
operation can compete
Distribution infrastructure with mining service the mine can lead
with regional/local food
development and operation. to increased access to
transportation services.
remote communities.
Potential for food prices
Increased demand for water and Energy costs could to increase or decrease
water infrastructure can put potentially either increase depending on mining
Markets
upward pressure on the household or decrease due to regional population influx and
cost of water services. mining operations. transportation infrastructure
improvements.
Purchasing Power An increase in income from mining-related jobs can lead to an improvement in people’s ability
(livelihood income, to purchase water, energy and/or food. The loss of mining employment upon closure makes local
remittances, credit) population vulnerable with respect to future purchasing power.
Aid (direct provision,
Potential for corporate mining financial support to local food aid systems. Tax revenue from
safety nets,
mining operation can potentially lead to increased government-sponsored food aid.
ACCESS

subsidies)
The establishment of a mine can
Self-Production
reduce the physical accessibility of
(household and
local water sources for surrounding Clearing of forests for Land used for mining can
communal water
communities due to threats of mining can reduce local result in loss of communal
sources, off-grid
violence or other security concerns wood fuel sources. gardens.
power, individual and
that may affect the mobility of
communal gardens)
people.

Table 3. Example WEF Security Benefits and Impacts from Mining

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2. Understanding Water, Energy and Food Security in the Mining Context

ACCESS

Potential for disruption of bartering relations dependent on how divisive the mining operation
Barter
among the local population.

Built

A new mining development can be the catalyst for improvements in local and regional
Transportation transportation networks. Mine construction and operations can also compete for scarce local
and regional transport vehicles, potentially disrupting food and water distribution and/or prices.
A new mining development can be the catalyst for improvements in local and regional
Communication communication networks. Mine construction and operations can also compete for scarce local
and regional bandwidth, potentially disrupting existing communication services and prices.
SUPPORTING INFRASTRUCTURE

A new mining development can be the catalyst for improvements in local sanitation and
waste management services. Mine construction and operations can also exacerbate existing
Sanitation and waste
environmental pressures associated with household and industrial sanitation and waste
facilities and services.

Natural

• Loss of vegetation could increase soil erosion and decrease water quality locally and
regionally.
Ecosystem goods
• Potential loss of wetlands can result in a decrease in the natural water treatment potential of
and services other
the landscape, resulting in negative impacts on local and regional drinking water resources.
than water, fuel
and food sources:
• Potential loss of local vegetation due to mine footprint, and/or contaminants from mine
erosion control,
waste can impact the mortality of pollinating bees.
water purification,
biological control, • Potential loss of coastal zone vegetation (i.e., mangroves) can lead to increased vulnerability
pollination, storm and risk of water and energy infrastructure and loss of agriculture land.
protection, air quality
• Change in river and stream quality and quantity can result in loss of aquatic species and
delivery of sediments to floodplains and wetlands during high flows.

Institutions

Utility boards No significant impact or benefit likely as a result of mine operations and closure.

User associations
No significant impact or benefit likely as a result of mine operations and closure.
and co-ops
SUPPORTING INSTITUTIONS AND POLICIES

Education and Increased demand for tradespersons could put strain on local and regional education
training institutions.

Safety oversight Increased monitoring and enforcement needs for water and land use regulations.

Law enforcement The additional water, energy and food infrastructure that comes on line as a result of a new
and security mining operation may become targets for vandalism, requiring additional security services.

Policies and Plans

Resource use and Existing water and land allocation policies may need to be revised with the introduction of
allocation mining.
Impact of mining on regional and local ecosystem goods and services could increase community
Climate change
vulnerability to climate change. Corporate investment in local initiatives can improve the
adaptation
adaptive capacity of households and economic sectors in the region.
Disaster Mine extraction facilities (open pits, underground shafts) and mine waste facilities (waste rock
recovery and risk piles and tailings dams) introduce new potential for disasters in earthquake and flood prone
management regions.
Mining investment can increase research and development opportunities for water, energy
R&D and innovation and food technologies regionally, as well as the potential for new products and services to be
introduced.

Table 3. Example WEF Security Benefits and Impacts from Mining

2.4. CASE STUDY: PERU’S
WATER ISSUES AND MINING’S
CONTRIBUTION
Peru is one of the most water-scarce countries
in South America (United Nations Environment
Programme [UNEP], n.d.), with most of the
population living west of the Andes, where less
than 2 per cent of water resources are found
(Global Water Partnership, 2013). Peru is also
one the most important destinations for mining
companies, as one of the world’s leading producers
of silver, bismuth, copper, lead, gold and tin. The
Peruvian mining sector uses about 5 per cent of
Peru’s water, or about 2 per cent of its total water
withdrawals. In comparison, agriculture accounts
for 80 per cent of Peru’s total water withdrawals
(Algeria, 2006). Domestic use accounts for about
12 per cent, but one quarter of Peruvians do not
have access to water supply services (Algeria,
2006).
Competition from the mining sector over
water resources is an area that has attracted
public protests due to the fear that mining
operations may deplete water resources. Water
contamination is also an issue, especially for
remote communities that rely on this water. Gold
mining is a particularly water-intensive activity. A
hydrological study completed in 1992 prior to the
opening of the Yannacocha Gold Mine (the world’s
largest gold mine, it is located near Cajamarca,
in the north of Peru) found that this operation
alone would require 1,000 cubic metres of water
per day, and estimates have projected that the
operation has used 125 million cubic metres of
water between 1993 and 2004 (Lubovich, 2007).
This amount is compared to Peru’s 2.5 billion
cubic metres in annual domestic water use
(Algeria, 2006). However, water pollution is the
issue that has received the highest amount of
scrutiny from local communities over concern for
contamination from substances such as cyanide
and arsenic. These communities are typically poor
and depend heavily on subsistence aquaculture,
relying on rivers for drinking water, irrigation and
for livestock. A study has found that the Chuppala
River has twice the amount of arsenic than
allowed by Peruvian law (Salazar, 2007).
Many companies have taken upon themselves to
improve the water security of communities in Peru.
For example, Doe Run, which is a lead producer
based in the United States, spent 2.4 times
more than required by their initial agreement
with the Peruvian government for environmental
improvement by, in part, building three sewage
treatment plants to treat the wastewater from
thousands of households in addition to its
own wastewater (Lubovich, 2007). Freeport-
McMoRan Copper & Gold, which operates a mine
in the Arequipa Province in the south of Peru,
engaged with municipalities and communities
in the surrounding area of their concession and
as a result identified the need for clean water as
the area’s most important need (ICMM, 2012).
The province is fast growing and there is limited
availability of water due to the arid environment
(ICMM, 2012). However, the watershed that
supplies most of the drinking water needs of the
population had become contaminated due to
household and industry discharge of untreated
water into the river. The company built a potable
water plant and a wastewater treatment plant.
The costs of building these two plants were shared
equally by the company and the municipalities.
None of the water generated by the potable water
treatment plant were to be used for the mine’s
operation, while the wastewater treatment plant
would ensure that environmental and human
health impacts of dumping untreated water would
be reduced, and would ensure a clean supply of
water for the region’s agricultural sector, thus
improving regional water and food security.
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2. Understanding Water, Energy and Food Security in the Mining Context
SUSTAINABILITY IMPACTS SYSTEM CHANGES
Increased presence of toxins in
Effluents to Water
water
Acid mine drainage
Reduced flora/fauna density and
diversity
Overburden, tailings and other
mine waste
Reduced fish stocks
Hazardous material use and spills
Ocean health worsening
Water treatment infrastructure Improved water quality and flora/
investment fauna (opposite above
Figure 3. Causality Chains – Peru Case Study
2.5. CASE STUDY: MALI’S SOCIAL
AND ECONOMIC ISSUES AND
MINING’S CONTRIBUTION
Mali is one of the poorest countries in the world,
with a ranking of 176 out of 187 countries on the
UNDP’s Human Development Index (UNDP, 2014).
An estimated 78 per cent of the population lives
on less than USD2 a day (World Bank, 2010).
Economic activities have traditionally been limited
to the areas irrigated by the Niger River, with
some 80 per cent of the population deriving their
living from farming or fishing (CIA, 2014). However,
in the last 20 years, with the advent of large-
scale mining, mineral production has become an
increasingly important activity.
In particular, Mali is now Africa’s third-largest
gold producer (after South Africa and Ghana),
and gold accounts for over half of all of the
country’s exports, while gold mining accounts
for approximately 20 per cent of government
revenues (Drakenberg, 2010). As a result, mining
has been recognized as a prominent driving
force in the country’s poverty-reduction strategy
(Republic of Mali, 2006). It is estimated that
approximately 13,000 people are formally
employed by the sector, representing 15 per
cent of the country’s total formal employment
(Drakenberg, 2010). However, with an estimated
average yearly salary of CFCF 2.32 million
(USD3,477), incomes are extraordinary in the eyes
SECURITY OF WEF
SUPPLIES
Decreased household and
economic water consumption
Reduced staple crop yields
Decreased water for food
production
Undernourishment
Improved water and food security
(opposite above)
of ordinary Malian citizens, as they are nearly four
times the country’s GDP per capita (Jul-Larsen,
Kassibo, Lange, & Samset, 2006). Moreover,
approximately 90 per cent of those employed
by the mining sector are Malians (Jul-Larsen,
Kassibo, Lange, & Samset, 2006). Nearly all of
those employed are men.
Surveys among the mining workforce in Mali has
found that these people were able to save money
and make investments (Jul-Larsen, Kassibo,
Lange, & Samset, 2006). Almost half of the
workers (46 per cent) had invested in land and/or
a house. About one in five (18 per cent) bought a
car, while more than half (54 per cent) bought a
motorcycle. In addition, one in four (23 per cent)
bought cattle, with the majority of these (68 per
cent) reporting that the purchase of cattle is a
form of saving. Finally, about one third (32 per
cent) acquired a savings account at a bank. The
vast majority of workers sent money to members
of their family (92 per cent), and more than half of
them (55 per cent) sent money on a monthly basis
for “the purpose of consumption, either of basic
commodities such as food and clothing, or major
family events such as weddings and funerals.” It is
estimated that about four people depend on the
wages of each mine worker in Mali (Jul-Larsen,
Kassibo, Lange, & Samset, 2006). For these people,
financial benefits result in their being able to more
easily afford water, energy and food.
 SECURITY OF WEF
SUSTAINABILITY IMPACTS SYSTEM CHANGES
SUPPLIES
Decreased unemployment rate
Employment
Greater disposable income, savings
Net savings improved
and investments enhance the
Salary and benefits
ability of these people to afford
Debt ratio improved
Government revenue water, energy and food.
Investments in productive assets

Figure 4. Causality Chains – Mali Case Study

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3. A Review of Sustainability Frameworks and Indicators for the Mining Industry
3. A REVIEW OF SUSTAINABILITY
FRAMEWORKS AND INDICATORS FOR
THE MINING INDUSTRY

U nderstanding and measuring the

sustainability impacts of mining provides
important insight into the ultimate influence of
security is a corollary concern because water is
at the foundation of all animal and vegetal life.
Other significant environmental impacts include
mining on WEF security. The specific linkages greenhouse gas emissions and biodiversity loss.
between these sustainability impacts, however,
The direct social and economic effects of mines
are not universal and depend upon the specific
are related to resettlements and land rights,
context of the mining project and communities,
health and safety, and employment (Table 5).
including whether communities are sufficiently
Whereas the environmental impacts of mines
resilient and the extent to which they rely on the
are typically negative, the social and economic
natural environment for food and subsistence.
effects are mixed. Mining can provide income and
This chapter presents an overview of the broader
employment, and thereby improve the ability of
sustainability benefits and impacts of mining
households to afford and secure water, energy and
operations and relevant indicators for assessing
and tracking changes over time. It concludes by food needs. However, where employment leads
summarizing the approach of leading countries to health and disability issues, it can reduce
in measuring and monitoring the sustainability this ability in the future. The displacement of
impacts of the mining sector. communities can deprive households of their
usual water, energy and food sources.
The sustainability impacts of mining are the
principle levers by which the components of
WEF security are affected (Table 5). Water use
and pollution are some of the most serious
environmental impacts of the industry, and occur
from three factors: sedimentation, acid drainage,
and metal deposition. This deposition occur as a
result of the release of particulate matter from
mining operations first into the atmosphere and
secondly into the soil and water bodies. These
factors are a direct result of the amount of waste
produced by mining operations which, in the case
of gold and silver, includes more than 99 per cent
of the ore extracted (Da Rosa & Lyon, 1997). The
use of chemicals in processing, such as cyanide
and arsenic, can also be an important contributor.
Water security is inadvertently affected as a
result of its environmental release, and food

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3. A Review of Sustainability Frameworks and Indicators for the Mining Industry

ENERGY
WATER
SUSTAINABILITY IMPACTS OF MINING

FOOD
PRODUCTION SELECTED FROM THE REASONING
GLOBAL REPORTING INITIATIVE:

Strength of relationship between mining’s sustainability impacts and WEF: Strong linkage; Weak linkage

ENVIRONMENT

Access to water for agriculture and other uses

Total water use
may be diminished.

Land in indigenous territory Access to critical resources may be limited.

Some populations may rely on surrounding

Major impacts on biodiversity in terrestrial,
fauna/flora for subsistence, incomes and
freshwater and marine environments
livelihoods.
On a global scale, GHGs are contributors to
climate change, which affects WEF production
Greenhouse gas emissions
systems through drought, excess moisture, for
example.
NOx and SOx emissions causing acid rain, which
NOx, SOx and other significant air emissions affects the quality and quantity of water and
food sources.
Quality of water and food, through food chain
Different types waste and their destination
effects, can be affected by mine waste.
Quality of water and food, through food chain
Significant discharges to water
effects, can be affected by liquid effluents.
Quality of water and food, through food chain
Significant spills of chemicals, oils, and fuels
effects, can be affected by significant spills.
Incidents of and fines for non-compliance Generalized effect on quality, quantity and
with international frameworks and applicable access due to wide-ranging relevance of
regulations related to environmental issues. measures.
Increased sediment release to surface water Quality of water in terms of sedimentation can
bodies reduce potential for drinking water, reduce the
quantity of food sources (e.g., piscivorous fish),
and can impact hydroelectrical infrastructure.

SOCIAL

Health and Safety

Access to WEF may be reduced due to decreased
Standard injury, lost day, absentee rates and
ability for self-production, lost income, and
number of work-related fatalities.
employability/productivity.
Access to WEF may be reduced due to decreased
Number of new cases of occupational disease by
ability for self-production, lost income, and
type
employability/productivity.
Training and Education
Access to WEF may be improved due to
Average hours of training per year per employee
increased ability for self-production, increased
by category of employee
income, and employability/productivity.

Table 4. Overview of the Linkages Between Select Mining Sustainability Impacts and WEF Security
Community
Policies/procedures/programs to manage Generalized effect on quality, quantity and
impacts on communities in areas affected by access due to wide-ranging relevance of
activities. measures.
Local economic contribution and development
Financial access to WEF may be improved due to
impact of particular significance and interest to
increased purchasing power.
stakeholders.
Generalized effect on quality, quantity and
Programs that address artisanal and small-scale
access due to wide-ranging relevance of
mining within company areas of operation.
measures.
Resettlement
Access to WEF may be decreased due to
Resettlement activities foregone ability to access traditional livelihood
and income resources.
Land Rights
Access to WEF may be safeguarded by
Process for identifying local communities’ land
protecting land rights due to maintained ability
and customary rights and grievance mechanisms
to access traditional livelihood and income
used to resolve any disputes.
resources.

ECONOMIC

Employment
Breakdown of workforce by status (employee/
non-employee), and by employment contract
Employment enhances financial access to WEF.
(indefinite or permanent/fixed term or
temporary).
Net employment creation and average turnover. Employment enhances financial access to WEF.
Percentage of employees represented by
Equitable salary and working conditions can help
independent trade union organizations or
ensure continued financial and physical access
other bona fide employee representatives OR
to WEF by promoting a decent income and
percentage of employees covered by collective
safeguarding the health of workers.
bargaining agreements.
Policy and procedures involving information, Equitable salary and working conditions can help
consultation & negotiation with employees over ensure continued financial and physical access
changes in the organization's operations e.g., to WEF by promoting a decent income and
restructuring. safeguarding the health of workers.

The process by which sustainability translates

into WEF security benefits and impacts can be
conceptualized as a three-step process (Figure 5).

Mining Changes in Water, energy and

activities’ environmental, food security
environmental, social and impacts
social and economic
economic systems
by-products

Figure 5. Sustainability Impacts and WEF Security

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3. A Review of Sustainability Frameworks and Indicators for the Mining Industry
3.1. SUSTAINABILITY BENEFITS health and safety, community consultations,
training and education, and so on. Economic
AND IMPACTS OF MINING
benefits are often the most easily measurable
While the economic benefits of mining are by-products of mining, and include employment,
important, especially in developing countries, salaries and government revenues.
the process of exploration for and exploitation
These immediate effects typically form the core
of mineral deposits is directly associated with
of existing indicator and reporting systems of
undesirable by-products that can cause harm
mining companies, and relate to the direct by-
to environmental and social systems. Such by-
products of activities required to explore and
products include the overburden and tailings that
exploit mineral deposits. Often these effects
are produced when extracting and processing ore.
depend on the kind and level of environmental
The water effluent from these waste facilities can
technologies, and social and economic practices
be managed with state-of-the art technologies,
involved in these activities. Mining also undertakes
such as the mitigation of cyanide, arsenic and
significant spending on goods and services from
other chemical effluents into the environment.
local businesses, and infrastructure investments.
Social by-products can also be managed with
appropriate policies that promote occupational

ENVIRONMENTAL SOCIAL ECONOMIC

Hazardous material use and spills Occupational health and safety Employment
Acid mine drainage Labour/management relations (incl. Salary and benefits
collective bargaining)
Effluents to water Training and education Government revenue
Water withdrawal Child labour Procurement and suppliers
Overburden, tailings and other mine Forced labour Local, gender and indigenous
waste participation
Emissions to air Resettlement Infrastructure investment
Biodiversity disturbance Artisanal and small-scale mining Ownership
Energy production and use Indigenous land, culture and human
rights
Mercury and cyanide use and Human rights training
management
Closure and rehabilitation Community compensation, development
and impact management
Land-use change Community engagement
Land disturbance Security issues
Noise and other nuisance Corruption and public policy

Table 5. Possible Headline Indicator Categories for Monitoring Sustainability Impacts of Mining
Source: Synthesis based on IISD’s review of indicator frameworks at the company level.

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3. A Review of Sustainability Frameworks and Indicators for the Mining Industry

3.2. SYSTEM CHANGES AND for their water and food needs, then they can be
negatively affected due to these effects. Taking
SECURITY OF WEF SUPPLIES
natural capital or ecosystem goods and services
Environmental systems potentially change due values into account, overall economic values
to mining activities, resulting in poorer air quality, might be positive or negative.
greater deforestation, higher levels of toxicity,
Economic and traditional market systems
reduced flora and fauna density, and so on. A
tend to benefit from mining through a reduced
decline in the state of the environment leads to
unemployment rate, greater macroeconomic
a deterioration in the levels of adequate quantity
performance and household savings. Access
and acceptable quality water, energy and food.
to water, energy and food is improved through
Water and food are typically the most negatively
mining’s economic benefits, which will improve
affected by adverse environmental impacts,
the purchasing power of individual beneficiaries.
as the contamination of water due to mining
Social systems tend to be negatively affected,
activities not only affects water quality but also
although effects are mixed—for example,
indirectly affects flora and fauna that consume
education rates and labour productivity can be
contaminated water and may die as a result or
improved, while the prevalence of occupational
bio-accumulate toxins to levels that are unsafe
diseases and community conflicts can increase.
for human or animal consumption. If communities
A deterioration in the social system will lead to a
and industries rely on the natural environment

ENVIRONMENTAL SOCIAL ECONOMIC

Air quality Occupational diseases Macroeconomic performance

Land use and status Community conflicts Foreign investment
Proportion of land that is forested Workplace accidents Trade
Proportion of forest damaged by Net gain or loss in environmental goods
Labour productivity
defoliation and services values
Presence of toxins in water Education rate Unemployment rate
Flora/fauna density and diversity Land rights Net savings
Compliance with International Labour
Threat status of species Debt ratio
Organization standards
Share of women/indigenous in
Critical biome
employment
Biochemical oxygen demand (BOD) in
water bodies
Fish stocks
GHG emissions
Ocean health
Water resource use
Fragmentation of habitat
Generation of hazardous waste

Table 6. Possible Headline Indicator Categories for Monitoring System Changes

Source: Synthesis based on IISD’s review of indicator frameworks at the company level.
reduction in access to water, energy and food by,
for example, a loss in the ability to self-produce as
a result of occupational disease, or inappropriate
resettlement and infringement/loss of land rights
which prevent physical access to subsistence
resources.
As a result of mining-related changes in
environmental, social and economic systems, WEF
security may be positively or negatively affected as
illustrated in the example causality chains in Table 7.

SECURITY OF WEF
SUSTAINABILITY IMPACTS SYSTEM CHANGES
CAUSALITY SUPPLIES
CHAIN
MINING ACTIVITIES’ CHANGES IN ENVIRONMENTAL,
EXAMPLE WATER, ENERGY AND FOOD
ENVIRONMENTAL, SOCIAL AND SOCIAL AND ECONOMIC
SECURITY IMPACTS
ECONOMIC BY-PRODUCTS SYSTEMS
Water may be unsafe for human
consumption, and/or use for
1 Acid mine drainage Higher presence of toxins in water
crops and fish if it exceeds limits
specified in applicable standards.
Poor occupational health and Increased prevalence of Reduced ability to generate income
2
safety occupational diseases and afford or self-produce goods.
Decline in agricultural productivity
and a deterioration in terrestrial
3 Emissions to air Decreased air quality and acid rain and aquatic ecosystem can lead to
decreased availability of food and
water.
4 Employment Reduced unemployment rate Ability to afford goods is improved.

Table 7. Example Causality Chains for Sustainability Impacts and WEF Security

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3. A Review of Sustainability Frameworks and Indicators for the Mining Industry

3.3. THE ORIGINS OF MINING

SUSTAINABILITY PRACTICES AND
REPORTING FRAMEWORKS

GRI’s MMSS
supplement version
1 is published

MCEP is published

GMI decides to MAC’s Toward

commission the MMSD project is Sustainable Mining
MMSD project completed program is launched IRMA is founded

1998 1999 2000 2001 2002 2003 2004 2005 2006

GMI is formed ICMM is created ICMM’s Sustainable MCA’s Enduring

Development Value is released
Framework is
adopted
IGF is launched
with 25 member
countries

Figure 6. Timeline of Initiatives: Mining Sustainable Development Events

Source: IISD
 PDAC’s e3Plus
Framework is
published

ImpactMin starts

GRI’s MMSS IRMA begins

supplement version certifying mining
3 is published operations

2007 2008 2009 2010 2011 2012 2013 2014 2015

World Economic IGF’s Mining Policy

Forum’s Framework is
Responsible Mineral released
Development
Initiative is
launched

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3. A Review of Sustainability Frameworks and Indicators for the Mining Industry

Over the last 15 years, an alternative movement
has emerged. It pivots away from addressing
the sustainability impacts of mining using an
adversarial and advocacy-based approach—
instead, it increasingly revolves around a shared
agenda. A series of initiatives formed the basis
for a shared strategy and collective action around
mining’s contribution to sustainable development
for both policy-makers and mining companies.
In 1999, out of concern for the adverse reputation
of the mining industry within society, the chief
executive officers of the nine largest mining
companies, under the auspices of the Global
Mining Initiative (GMI), decided to commission a
global review of the ways in which the industry
could optimize its contribution to sustainable
development. The GMI then initiated the Mining,
Minerals and Sustainable Development (MMSD)
project, which had the following goals:
• To assess global mining and minerals use
in terms of the transition to sustainable
development—its track record in the past

ISSUES PROGRESS 10 YEARS FOLLOWING COMPLETION OF MMSD

The past 10 years have helped to define what community good practices look like. Mining industry
associations now provide binding policies and guidance on the community development concerns for their
members. Industry paternalism has decreased and there is evidence that companies are taking concrete
steps to ask communities what they want. In addition, Community Sustainable Development Plans are
Local communities taking shape in the form of Impact Benefit Agreements and Community Development Agreements and
and mines are spreading into regulation. Moreover, progress has been made in the area of capacity building for both
communities and companies, but it still remains a challenge. Communities now better understand their
rights and place more demands on governments and companies to ensure benefits from mining activities.
At the same time, mining companies are continuously engaged in maintaining their social license to
operate throughout the life cycle of the mine.
Technical advances have been made on water and waste metals toxicity. In addition, the frequency
of environmental disasters has markedly decreased. Water is currently seen amongst the top three
sustainable development issues for the next 10 years, and a number of innovations are being developed to
respond to this concern.
Mining, minerals and
Biodiversity is another area of leadership, with ICMM member companies agreeing not to explore or mine
the environment
in World Heritage sites. Biodiversity-offset programs have also been developed to assist companies in
creating a net positive contribution to biodiversity.

While mine closure is still a challenge, exemplary approaches such as turning old mine sites into wind
farms and jatropha plantations for green energy production have been developed.
An integrated
Progress has been made with regards to addressing conflict minerals, and a movement toward supply
approach to using
chain traceability for mining products.
minerals
A large number of reporting initiatives has emerged through initiatives such as the GRI’s mining sector
Access to supplement, the ICMM’s Sustainable Development Principles and the Extractive Industry Transparency
information Initiative (EITI). While these have helped shape best practices, there is still a lack of adequate
accountability and verification systems for assessing the mining industry’s performance and progress.
Sector governance – The number of multistakeholder initiatives has grown tremendously since 2002, which has contributed to
roles, responsibilities an increased understanding of sustainable development and an enhanced ability for cooperation among
and instruments for those with similar interests. Several voluntary codes and forms of guidance have emerged, but not all of
change them have public reporting and independent verification.

Table 8. Progress Following the Decade Since the MMSD Project

Source: Buxton (2012)
 and its current contribution to and detraction
from economic prosperity, human well-being,
ecosystem health and accountable decision
making.
• To identify if and how the services provided
by the minerals system can be delivered in
accordance with sustainable development in
the future.
• To propose key elements of an action plan for
improvement in the minerals system.
• To build a platform of analysis and
engagement for ongoing cooperation and
networking between all communities of
interest.
Completed in 2002, MMSD created a shared
idea of the appropriate and necessary roles
for the major actors in mining and sustainable
development on global and regional levels. Ten
years after the completion of the MMSD, a
number of issues had significantly progressed, as
illustrated in Table 9.
Following the recommendations of the MMSD
initiative, various bodies were formed, including
the International Council on Mining and Metals
(ICMM) and the Intergovernmental Forum
on Mining, Minerals, Metals and Sustainable
Development (IGF). The ICMM brings together
22 mining and metals companies as well as 32
national and regional mining associations to

Box 4. The IGF’s Mining Policy Framework

The Mining Policy Framework is a compendium of best practices to guide governments as they
address the full range of issues related to mining.

Legal and policy environment - A mature modern legislative regime is one that provides clear lines
of responsibility and accountability. Such a regime provides the foundation of good governance and
contributes to sustainable development in all aspects of social and economic life.

Financial benefit optimization - Taxes and royalty revenues derived from exploration, mine
development and production reflect the value to society of the resources mined. They are collected
and put to work in support of the sustainable development of the nation.

Socioeconomic benefit optimization - The conversion of natural capital into human capital holds the
greatest promise for sustainable outcomes from mining activities.

Environmental management - The management of the natural resource base within ecosystems is
the continuous responsibility of any society seeking to become more sustainable.

Post-mining transition - A mining operation that is considered consistent with sustainable

development is one where planning for closure exists throughout the entire operation of the mine.

Artisanal and small-scale mining - Artisanal and small-scale mining is a complex and diversified
sector that ranges from informal individual miners seeking to make a subsistence livelihood, to small-
scale formal commercial mining entities that can produce minerals in a responsible way respecting
local laws.

Source: IGF (2013)

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3. A Review of Sustainability Frameworks and Indicators for the Mining Industry
drive forward the contribution of the sector to
sustainable development, while the IGF brings
together 48 countries into a global venue for
sustained discussions among governments
on practical issues related to its sustainable
management and development. These
organizations have continued MMSD’s legacy in
their ongoing contribution to the establishment of
a global set of rules for sustainable development
best practices in the mining and metals industry.
The IGF’s main contribution has been its Mining
Policy Framework which was tabled at the 19th
session of the United Nations Commission on
Sustainable Development (CSD19), held in May
2011. This document provides a “compendium of
activities that [IGF member countries] identified
as best practices for exercising good governance
of the mining sector and promoting the generation
and equitable sharing of benefits in a manner that
will contribute to sustainable development” (IGF,
2013, p. 4). The progressive implementation of this
framework by IGF member countries is to follow.
The ICMM’s main contribution has been
its Sustainable Development Framework,
which all ICMM member mining companies
are required to implement and report on.
The Sustainable Development Framework is
comprised of 10 principles related to sustainable
development issues, such as human rights,
health and safety, environmental performance,
biodiversity conservation, land-use planning and
socioeconomic development. The principles are:
1. Implement and maintain ethical business
practices and sound systems of corporate
governance.
2. Integrate sustainable development
considerations within the corporate decision-
making process.
3. Uphold fundamental human rights and respect
cultures, customs and values in dealings with
1
For more information, please see https://www.globalreporting.org/resourcelibrary/G3-1-English-Mining-and-Metals-Sector-Supplement-Quick-
Reference-Sheet.pdf
employees and others who are affected by our
activities.
4. Implement risk-management strategies based
on valid data and sound science.
5. Seek continual improvement of our health and
safety performance.
6. Seek continual improvement of our
environmental performance.
7. Contribute to conservation of biodiversity and
integrated approaches to land-use planning.
8. Facilitate and encourage responsible product
design, use, reuse, recycling and disposal of our
products.
9. Contribute to the social, economic and
institutional development of the communities
in which we operate.
10. Implement effective and transparent
engagement, communication and
independently verified reporting arrangements
with our stakeholders.
The Global Reporting Initiative (GRI), which
has been the leading reporting framework for
companies across all industry sectors, has
collaborated with the ICMM over a number
of years and released a Mining and Metals
Sector Supplement version 3 in March 2010,
complementing the GRI guidelines by providing
specific guidance for mining companies on
reporting on aspects of sustainable development
that are particularly relevant to the mining sector.1
A relatively more recent initiative, the Initiative
for Responsible Mining Assurance (IRMA), which
was founded in 2006 by a coalition of NGOs,
affected communities, mining companies and
trade unions, is developing standards for mining’s
contribution to environmental and social issues.
The IRMA expects to begin certifying mine sites
in 2015 with the goal of helping companies to
 PRINCIPLES GUIDELINES STANDARDS

MORE INTERPRETIVE  MORE PRESCRIPTIVE

LESS GUIDANCE MORE GUIDANCE

LITTLE COMPLIANCE STRICTER COMPLIANCE

5. Initiative for Responsible Mining
3. Global Reporting Initiative (GRI) Assurance (IRMA) Standard for
1. Centre for Science in Public
Guidelines and Mining and Metals Sector Responsible Mining
Participation (CSP2) Framework for
Supplement
Responsible Mining
6. Mining Association of Canada’s (MAC)
4. Prospectors and Developers Towards Sustainable Mining
2. Azapagic’s (2002) Mining and
Association of Canada (PDAC) e3Plus
Sustainable Development Indicators
Framework* 7. Mining Certification Evaluation Project
(MCEP)
* is currently exploring options to certify operations (to become a standard)

Table 9. Existing Frameworks in which Indicator Systems Have Been Developed

Source: Authors’ research

adopt practices that are “consistent with healthy
communities and environments, and leave positive
long-term legacies.”
Other organizations have focused on fostering
transparency and good governance of the
mining industry. These include: Natural Resource
Governance Institute’s Natural Resource Charter,
and Extractive Industries Transparency Initiative
(Natural Resource Governance Institute, 2014; EITI,
2015). In addition, large mining companies often
adhere to a wider set of sustainability frameworks
that are more sector-agnostic, such as the IFC
Performance Standards, ISO 14001, ISO 18001,
ISO 26000, OECD Guidelines for MNEs, World
Bank Safeguard Policies and UN Global Compact.
While the ICMM, IGF, GRI and other transnational
initiatives are mostly engaged at the global level,
others operate at the regional and national levels.
These include:
• Mining Association of Canada’s Towards
Sustainable Mining program, which helps
Canadian mining companies to achieve
sustainable mining practices by providing
a set of tools, best practice guidance
and reporting protocols to allow them to
demonstrate performance to key stakeholders
(MAC, n.d).
• The Prospectors and Developers Association
of Canada’s e3 Plus Framework for Responsible
Exploration, which describes a set of best
practices and tools for the improvement of
mining companies’ social, environmental, and
health and safety performance. The e3 Plus
Framework is currently exploring options to
develop indicators, reporting frameworks and
verification/certification systems to measure
performance on these issues. (PDAC, n.d.).
• In Australia, the Mining Certification
Evaluation Project (MCEP) has sought to
evaluate the feasibility of independent third-
party certification to assess the environmental
and social performance of mining sites (WWF-
Australia, 2010).

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3. A Review of Sustainability Frameworks and Indicators for the Mining Industry

• Also in Australia, a sustainable development development of indicator systems, while project-

framework called Enduring Value has
been developed by the Minerals Council of
Australia (MCA) to provide implementation
guidance for Australian mining companies’
operationalization of ICMM principles (Minerals
Coucil of Australia, 2005).
• In Europe, a project called ImpactMin that is co-
financed by the European Union has aimed to
develop new methods and a toolset for impact
monitoring of mining operations using Earth
Observations and in-situ data (ImpactMin, n.d.).
Mining sustainability practices and reporting
frameworks are continually evolving. Initiatives
such as the World Economic Forum’s Responsible
Mineral Development Initiative, World Business
Council for Sustainable Development’s Vision
2050, and Chatham House’s Resource Futures
have proposed various options for the sector’s
contribution to sustainable development into the
decades ahead (WBCSD, 2010; Wolrd Economic
Forum, 2013; Lee, et al., 2012).
level drivers encourage mining companies to
ensure that these indicators adequately describe
tangible benefits to business, governments and
communities (Warhurst, 2002). The report did
not recommend a specific set of core indicators,
but rather attempted to provide guidance for the
content and coverage of future indicator systems.
Its basic findings provided a backdrop for the
development of the reporting component of the
ICMM’s Sustainable Development Framework,
which was developed in 2003–2005 and released
in 2005, and the GRI Mining and Metals Sector
Supplement, which was developed in partnership
with the ICMM starting in 2003, first piloted in
2005 and issued in finally issued in a version 3
format in 2010.
Drivers
Globalization, “Voice of Society”, Voluntary Codes of
Conduct, Action Groups, Regulation, Conditions of
Finance, Supply-Chain Pressures, Industry Peer
Pressure, Internal Pressures, Environmental Change

3.4. REVIEW OF MINING AND oritie

s

NT Auth
t
en
SUSTAINABLE DEVELOPMENT m
Int
er
E

rn n
NM

INDICATORS
ve

BU
en

at
Na
Go

io
nm t
ER

na
l

t
na

en

SIN
B io
er

lC
tio

m na
ov
GOV

The MMSD project provided early guidance for

orp
us

lP
n
al G
ilateral & Interna

er

ine

ESS
ov

oratio
e
mining companies’ development of sustainability
sence
Nation

ss U
Local G

indicators. A report commission by MMSD Indicators

nit

reviewed the landscape of sustainability

indicator development approaches at the time,
Mult

suggesting a number of ways in which such Lo s

ca
l C o m m u n itie
approaches can meet the needs of a wide range Re
g s
of stakeholders (Figure 6) (Warhurst, 2002). The io n a tie
l Co m m u ni
most appropriate methodological approach was Sp
e cia s
l Interest CSO `
seen as one that is sufficiently generic to be
COM
applicable to the different indicator models in M U NIT Y
use by diverse stakeholder groups, while being
sufficiently tailored to the particular operating
environment of the mining sector. The global- Figure 7. Global-Level Drivers of Indicator System Development and
Uptake Suggested by MMSD-Commissioned Report
level drivers of indicator system development Source: Warhurst (2002)
are suggested to encourage the uptake and
IISD Resource Book | 40
3. A Review of Sustainability Frameworks and Indicators for the Mining Industry

Aiming to take stock of these and other early
efforts to develop sustainability indicators,
the Centre for Science in Public Participation
and the World Resource Institute launched an
independently led investigation that sought to
draw on and learn from these initiatives and other
academic and NGO sources (Miranda, Chambers,
& Coumans, 2005). The primary goal of their
review was to assess prior research on mining’s
contribution to sustainable development, identify
best practices, and provide recommendations
for retailers and other companies that are either
directly engaged in mining or source mineral
products in a responsible and sustainable manner.
The result of this study was the Framework for
Responsible Mining, which “outlines environmental,
human rights, and social issues associated
with mining and mined products, and explores
state-of-the-art social and environmental
improvements” (Miranda, Chambers, & Coumans,
2005, p. xi).
Also in 2005, the International Mineral Processing
Council convened with international experts in
minerals sustainability in an event titled “Indicator
of Sustainability for Mineral Extraction Industry: A
Review” and participating authors and presenters
represented government, academia and industry

URAL RESOURCES
NAT Pre reat y an
an gem tion

Th quit
em ent

Di
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t

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en
k M nga era

rec
ure
Ris er E -op

t & Poll
ort s

s o Com cial
pp ct

ag

Lic edi n Pre pare

old Co
Su mpa

Im utio rans
n E mu De

en ate ve ncy
m
tru en fits

eh and

nv nit vise

Communities
ce
I

iro y S iv
ct t of

o
ras em ne

& CSOs
to Bene tion
St nce

nm ec en
Inf nag f Be

ure

Op fit
ak
lia

en uri ess
Ma are o

era s
mp

te
Co
Sh

Sustainability
ty

Indicators

Government Business
(Local & National) (Local & Corporate)

Regulatory Framework & Permitting Conditions

Additional Development` Benefit
Conditions of Multi-lateral/ Bi-lateral Finance

Clearer Definition of Roles & Responsibilities

Agreeing Licence to Operate & Demonstrating
Commitment
Reputational Management & Track Record
Knowledge Aquisition & Risk Management

IN V
E ST M CT
E NT PROJE

Figure 8. Project-Level Drivers of Indicator System Development and Uptake Suggested by MMSD-Commissioned Report
Source: Warhurst (2002)
from 13 countries and the European Union. The
event provided a good overview of ongoing efforts
to develop indicator systems for the mining sector
in different regions of the world (Villas Boas,
Shields, Solar, Anciaux, & Onal, 2005).
Our review has shown that current indicator
systems vary widely in their breadth and depth of
coverage across different environmental, social,
and economic issues. Table 11 provides a general
overview of these findings.

COVERAGE
AZAPA GIC

E3PLUS

MCEP

IRMA
MAC
INDICATOR CATEGORIES WITHIN

FRM
GRI
INDICATOR FRAMEWORKS:

ENVIRONMENTAL

Spills x x 2
Hazardous material use x x x 3
Acid mine drainage x x x x x 5
Effluents to water x x x x x 5
Water withdrawal x x x x 4
Overburden, tailings and other mine waste x x x x x x x 7
Emissions to air x x x x x 5

Biodiversity disturbance x x x x x x x 7

Energy production and use x x x x 4

Mercury and cyanide use x x 2
Closure and rehabilitation x x x x x x 6
Land use x 1
Land disturbance x 1
Noise and other nuisance x x x 3

SOCIAL

Occupational health and safety x x x x x x x 7

Labour/management relations (incl.
x x x x x x 6
collective bargaining)
Training and education x x x x x 5
Child labour x x x x x 5
Forced labour x x x x x x 6
Resettlement x x x x x x 6
Artisanal and small-scale mining x x x 3
Indigenous land, culture and human rights x x x x x 5
Human rights training x x x x 4
Community compensation, development and
x x x x x 5
impact management
Community engagement x x x x x x x 7
Security issues x x x 3
Corruption and public policy x x x x x 5

Table 10. Indicator Framework Coverage

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3. A Review of Sustainability Frameworks and Indicators for the Mining Industry

ECONOMIC

Employment x x x 3
Salary and benefits x x x x 4
Government revenue x x 2
Procurement and suppliers x x x 3
Local, gender and indigenous participation x x x x x 5
Infrastructure investment x x x 3
Ownership x 1

Table 10. Indicator Framework Coverage

A compilation of selected indicators is found in the following tables.

ENVIRONMENTAL INDICATOR CATEGORY

ENVIRONMENTAL INDICATOR EXAMPLES
ISSUES DESCRIPTION
The types and volumes of
hazardous materials used,
and the methods in existence GRI:
for the safe storage of these
substances. • Materials used by weight or volume.

The presence of safeguards to • Percentage of materials used that are recycled input materials
Hazardous material
ensure the minimization of the Azapagic:
use and spills
occurrence and magnitude
of spills, and the methods in • Breakdown by type and the total amount of chemicals used.
existence to ensure that spills
are managed appropriately • Percentage of waste chemicals (processed or unprocessed) used
when they occur to minimize from both internal and external sources.
harm on the environment and
human health.
Pre-mining and operational FRM:
practices to appropriately
document and mitigate acid • Companies should conduct adequate pre-mining and operational
Acid mine drainage
mine drainage in accordance mine sampling and analysis for acid-producing minerals, based
with best available practices on accepted practices and appropriately documented, site-
and technologies specific professional judgment.

GRI:

• Total water discharge by quality and destination.

Azapagic:

• Total volume of tailings and disposal methods.

The volume, quality and
Effluents to water
destination of liquid effluents
• Percentage of permitted sites causing downstream and/or
underground water quality problems relative to the total number
of permitted sites.
• Describe measures put in place to prevent acid main drainage, if
applicable.
• Describe measures put in place to prevent tailings dam(s) failure.
• Breakdown of substances discharged with liquid effluents.

Table 11. Mine-Level Sustainable Development Indicators on Environmental Issues


Total amount of water that is
withdrawn and the amount
Water withdrawal of this water that is reused
relative to the availability of
water from each water source.
Total amount and type of non-
saleable material extracted,
including overburden, relative • Total waste extracted (non-saleable material, including the
to saleable material.
The disposal of hazardous and
Overburden, tailings
non-hazardous solid waste.
and other mine waste
Construction of tailings
impoundments and waste
rock dumps in a way that
minimizes environmental and
human health threats.
Significant air emissions
by type (e.g., GHGs, ozone-
Emissions to air depleting substances, NOx,
SO2, particles, heavy metals,
dioxins, silica).
Location and size of land in
or adjacent to areas of high
biodiversity value, and the
Biodiversity number of IUCN Red List
disturbance species with habitats in areas
affected by operations. The
activities used to identify
areas of high conservation
Table 11. Mine-Level Sustainable Development Indicators on Environmental Issues
GRI:
• Total water withdrawal by source.
• Water sources significantly affected by withdrawal of water.
• Percentage and total volume of water recycled and reused.
GRI:
• Breakdown of the amount of each saleable primary resource
extracted.
overburden).
• Percentage of the amount of saleable products relative to the
total amount of material extracted.
• Percentage of each resource extracted relative to the total
amount of the permitted reserves of that resource.
Azapagic:
• Total hazardous and non-hazardous solid waste and breakdown
by type and description of disposal methods.
• Percentage of permitted sites that have a problem of land
contamination relative to the total number of permitted sites.
GRI:
• Total direct and indirect greenhouse gas emissions by weight.
• Other relevant indirect greenhouse gas emissions by weight.
• Initiatives to reduce greenhouse gas emissions and reductions
achieved.
• Emissions of ozone-depleting substances by weight.
• NO, SO, and other significant air emissions by type and weight.
Azapagic:
• Equivalent number of fully grown trees that would be required for
sequestration of the total CO2 emissions.
• The amount of CO2 emissions that can (theoretically) be
sequestered by the trees planted by the company.
• Net emissions of CO2 (total CO2 emissions minus CO2 emissions
potentially sequestered by trees).
• Emissions of ozone-depleting substances, breakdown by
substance.
• Emissions of particles.
• Toxic emissions (including heavy metals, dioxins, crystalline silica
and others), breakdown by substance.
GRI:
• Location and size of land owned, leased, managed in, or adjacent
to, protected areas and areas of high biodiversity value outside
protected areas.
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3. A Review of Sustainability Frameworks and Indicators for the Mining Industry

• Description of significant impacts of activities, products, and

services on biodiversity in protected areas and areas of high
biodiversity value outside protected areas.
• Amount of land (owned or leased, and managed for production
activities or extractive use) disturbed or rehabilitated.
• Habitats protected or restored.
• Strategies, current actions, and future plans for managing
impacts on biodiversity.
Biodiversity value, habitat protection and
disturbance (cont.) rehabilitation. • The number and percentage of total sites identified as requiring
biodiversity management plans according to stated criteria, and
the number (percentage) of those sites with plans in place.
• Number of IUCN Red List species and national conservation list
species with habitats in areas affected by operations, by level of
extinction risk.

Azapagic:
• Description of the activities for habitat protection or
rehabilitation.
GRI:

• Direct energy consumption by primary energy source.

• Indirect energy consumption by primary source.
• Energy saved due to conservation and efficiency improvements.
• Initiatives to provide energy-efficient or renewable energy based
products and services, and reductions in energy requirements as
Direct and indirect energy a result of these initiatives.
consumption by primary and
secondary energy sources by • Initiatives to reduce indirect energy consumption and reductions
Energy production and type (fuels including natural achieved.
use gas, diesel, LPG, petrol and Azapagic:
other fuels; hydroelectricity,
wind), and total energy • Breakdown by type of the amount of the primary energy used
production. (including natural gas, diesel, LPG, petrol and other fuels).
• Breakdown by type of the amount of the secondary energy
(electricity and heat) used and exported.
• Energy from renewable sources used and exported.
• Total primary and secondary energy used.
• Percentage of renewable energy used relative to total energy
consumption.
The use and management of
FRM:
cyanide and mercury, including
Mercury and cyanide capture and disposal methods,
• Mine operators should adopt the Cyanide Management Code,
use compliance with international
and third-party certification should be utilized to ensure that
codes and conventions, and
companies implement safe cyanide management.
third-party certifications.

GRI:
The presence and scope
of closure plans, and a • Number and percentage of operations with closure plans.
fund for mine closure and Azapagic:
Closure and
rehabilitation, including the
rehabilitation
mitigation of post-closure • Number of quarries/mines closed.
environmental and social
impacts. • Number of sites rehabilitated.
• Total land area rehabilitated.

Table 11. Mine-Level Sustainable Development Indicators on Environmental Issues


Closure and
rehabilitation (cont.)
Total area of permitted
Land use developments and newly open
for extraction activities.
Land management methods
to prevent and control soil
Land disturbance erosion, vegetation clearing,
sedimentation, wetland
impacts and other issues.
The implementation of
maximum noise level
Noise and other requirements, and the
nuisance management of other nuances
such as road dirt and dust and
visual impact.
SOCIAL INDICATOR CATEGORY
ISSUES DESCRIPTION
The presence and quality of
health and safety policies and
practices, including education
Occupational and training. The prevalence
health and of occupational accidents and
safety diseases, and their fatality
and human health impacts.
Programs to for HIV/AIDS
prevention and protection.
Table 12. Mine-Level Sustainable Development Indicators on Social Issues
• Percentage of the land area rehabilitated relative to the total land
area occupied by the closed mines/quarries, awaiting rehabilitation.
• Number of awards for rehabilitation and a summary, if applicable.
• Number of sites officially designated for biological, recreational or
other interest as a result of rehabilitation.
• Net number of trees planted (after thinning and after subtracting
any trees removed for the extraction activities).
Azapagic:
• Total area of permitted developments (quarries/mines and
production facilities).
• Total land area newly opened for extraction activities (including
area for overburden storage and tailings).
• Percentage of newly opened land area relative to total permitted
developments.
e3Plus:
• Methods of erosion control.
• Clearing of vegetation.
• Soil conservation.
• Managing drainagee and runoff.
• Methods to control sediment.
Azapagic:
• Total number of external complaints related to noise, road dirt and
dust, visual impact and other nuisance.
SOCIAL INDICATOR EXAMPLES
GRI:
• Percentage of total workforce represented in formal joint management–
worker health and safety committees that help monitor and advise on
occupational health and safety programs.
• Rates of injury, occupational diseases, lost days, and absenteeism, and
number of work-related fatalities by region.
• Education, training, counselling, prevention, and risk-control programs in
place to assist workforce members, their families, or community members
regarding serious diseases.
• Health and safety topics covered in formal agreements with trade unions.
Azapagic:
• Percentage of hours of training regarding health and safety relative to the
total number of hours worked.
• Number of fatalities at work.
• Lost-time accidents relative to the total hours worked.
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3. A Review of Sustainability Frameworks and Indicators for the Mining Industry
Occupational
health and
safety (cont.)
The presence of collective
bargaining agreements, worker
organizations, freedom of
Labour/ association, formal complaint
management mechanisms, and appropriate
relations (incl. policies on consultations and
collective negotiations with employees.
bargaining) Frequency and duration of
strikes and lockouts, and
response to these by the
management.
The existence, quality and
accessibility of training, skills
management, lifelong learning
programs and financially
supported education to
Training and
enhance the skillset of
education
employees and improve the
employability of these after
career ending. The use and
adequacy of performance and
career development reviews.
The existence of processes
to identify operations that
are at risk for incidents of
Child labour
child labour, and processes to
identify non-compliance with
ILO Convention 182.
The existence of processes to
identify operations that are
at risk for incidents of forced
Forced labour
labour, and processes to
identify non-compliance with
ILO Convention 29.
Table 12. Mine-Level Sustainable Development Indicators on Social Issues
• Percentage of total absence-hours on health and safety grounds relative
to the total hours worked.
• Number of compensated occupational diseases.
GRI:
• Percentage of employees covered by collective bargaining agreements.
• Minimum notice period(s) regarding operational changes, including
whether it is specified in collective agreements.
• Number of strikes and lockouts exceeding one week’s duration, by country.
Azapagic:
• Ranking of the company as an employer in internal surveys.
• Policy and procedures involving consultation and negotiation with
employees over changes in the company (e.g., restructuring, redundancies
etc.).
GRI:
• Average hours of training per year per employee by employee category.
• Programs for skills management and lifelong learning that support the
continued employability of employees and assist them in managing
career endings.
• Percentage of employees receiving regular performance and career
development reviews.
Azapagic:
• Percentage of hours of training (excl. health and safety) relative to the total
hours worked (e.g., management, production, technical, administrative,
cultural etc.).
• Number of employees that are financially sponsored by the company for
further education.
• Summary of programs to support the continued employability of
employees and to manage career endings.
GRI:
• Operations identified as having significant risk for incidents of child
labour, and measures taken to contribute to the elimination of child labour.
Azapagic:
• Specify any verified incidences of non-compliance with child labour
national and international laws.
GRI:
• Operations identified as having significant risk for incidents of forced
or compulsory labour, and measures to contribute to the elimination of
forced or compulsory labour.
Azapagic:
• Summary of the policy to prevent forced and compulsory labour as
specified in ILO Convention No. 29, Article 2.
 Whether resettlement has
taken place. If resettlement
occurred, the number
households affected, how
Resettlement livelihoods have been affected
in the process, and whether
appropriate compensation
has been made to affected
households.
GRI:
• Sites where resettlements took place, the number of households
resettled in each, and how their livelihoods were affected in the process.
Azapagic:
• Number of proposed developments that require resettlement of
communities, with a description, if applicable.

The presence of artisanal

and small-scale mining at or
adjacent to the mining site,
and actions taken to address
associated risks. Efforts made GRI:
Artisanal and to engage ASM workers and
small-scale their communities to help • Number (and percentage) or company operating sites where ASM takes
mining (ASM) them obtain legal status place on, or adjacent to, the site; the associated risks and the actions
to be integrated within the taken to manage and mitigate these risks.
formal sector, gain access to
markets, and work in a more
environmentally and socially
sustainable fashion.

Whether operations GRI:

take place in or adjacent
• Total number of operations taking place in or adjacent to Indigenous
to indigenous people’s
Peoples’ territories, and number and percentage of operations or
territories, formal policies
sites where there are formal agreements with Indigenous Peoples’
that address the rights of
Indigenous land, communities.
these communities, and
culture and
whether formal agreements • Total number of incidents of violations involving rights of indigenous
human rights
have been reached with these people and actions taken.
communities. The occurrence
Azapagic:
of incidences where violations
of indigenous rights have been • Number of proposed developments that require resettlement of
committed and actions taken. communities, with a description, if applicable.
GRI:

• Total hours of employee training on policies and procedures concerning

aspects of human rights that are relevant to operations, including the
Training of employees, security
Human rights percentage of employees trained.
forces and suppliers on human
training
rights issues. • Security practices.
• Percentage of security personnel trained in the organization’s policies
or procedures concerning aspects of human rights that are relevant to
operations.

Azapagic:

The redistribution of revenues
to communities in terms of
Community compensation, community
compensation, infrastructure and other
development community projects. The use
and impact of binding contracts that
management are enforceable through the
national court system to
secure these agreements.
• Summary of the policy for protection of land rights and for land
compensation.
• Summary a Community Sustainable Development Plan to manage
impacts on communities in areas affected by its activities during the
mine operation and post-closure.
• Specify any community projects in which the company has been
involved.
• Total number of health and safety complaints from local communities,
with a summary, if applicable.

Table 12. Mine-Level Sustainable Development Indicators on Social Issues

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3. A Review of Sustainability Frameworks and Indicators for the Mining Industry
Community
compensation,
development
and impact
management
(cont.)
The approaches by which
stakeholders are identified
Community and engaged to help inform
engagement decision making with regards
to the key topics of concerns
in affected communities.
Methods by which
management ensures that
the use of security personnel
Security issues respects human rights and
promotes an environment
that is conducive to conflict
prevention and resolution.
Policies, procedures and
employee training to minimize
Corruption and the risk of bribery and
public policy corruption. Engagement in
politics and policy via political
contributions and lobbying.
Table 12. Mine-Level Sustainable Development Indicators on Social Issues
• Percentage of revenues that are redistributed to local communities from
the relevant areas of operation, relative to the net sales.
• Investments into community projects (e.g. schools, hospitals,
infrastructure) as percentage of net sales.
GRI:
• Nature, scope, and effectiveness of any programs and practices that
assess and manage the impacts of operations on communities, including
entering, operating, and exiting.
• Number and description of significant disputes relating to land use,
customary rights of local communities and Indigenous Peoples.
• The extent to which grievance mechanisms were used to resolve disputes
relating to land use, customary rights of local communities and Indigenous
Peoples, and the outcomes.
Azapagic:
• Summary of the policy for liaison with local communities.
• Summary of the policy on stakeholder involvement, including the
mechanisms by which stakeholders can participated in decision making
on the issues that concern them.
FRM:
• Companies should conduct an independent peace and conflict impact
assessment to assess the risk of provoking or exacerbating violent
conflict through their operations. Companies should avoid investing in
areas where the risk of violent conflict is high (e.g., in areas of civil war or
armed conflict).
GRI:
• Percentage and total number of business units analyzed for risks related
to corruption.
• Percentage of employees trained in organization’s anti-corruption
policies and procedures.
• Actions taken in response to incidents of corruption.
• Public policy positions and participation in public policy development
and lobbying.
• Total value of financial and in-kind contributions to political parties,
politicians, and related institutions by country.
Azapagic:
• Summary of the policy on addressing bribery and corruption that
meets (and goes beyond) the requirements of the OECD Convention on
Combating Bribery.
• Summary of the policy for managing political contributions and lobbying.
 ECONOMIC INDICATOR CATEGORY
ISSUES DESCRIPTION
Total workforce employment
and type of employment (e.g.,
contractor, staff, consultant,
Employment full-time, part-time).
Representation of workforce
across age groups, gender and
region.
Total payroll costs and
benefits, including health,
pension, other benefits and
Salary and
redundancy packages). The
benefits
range of ratios of standard
entry-level wage compared to
local minimum wage.
Amount of money paid to the
Government
government in the form of
revenue
taxes and royalties.
Spending on locally based
suppliers, and the percentage
Procurement
of contracts that are paid
and suppliers
in accordance with agreed
terms.
Table 13. Mine-Level Sustainable Development Indicators on Economic Issues
ECONOMIC INDICATOR EXAMPLES
GRI:
• Total workforce by employment type, employment contract, and region.
• Total number and rate of employee turnover by age group, gender, and
region.
• Benefits provided to full-time employees that are not provided to
temporary or part-time employees, by major operations.
Azapagic:
• Net employment creation expressed as percentage contribution to
employment in a region or country.
• Employee turnover expressed as percentage of employees leaving
company relative to the total number of new employee.
GRI:
• Direct economic value generated and distributed, including revenues,
operating costs, employee compensation, donations and other community
investments, retained earnings, and payments to capital providers and
governments.
• Coverage of the organization’s defined benefit plan obligations.
Azapagic:
• Health, pension and other benefits and redundancy packages provided to
employees as percentage of total employment costs.
• Ratio of lowest wage to national legal minimum, breakdown by country.
GRI:
• Direct economic value generated and distributed, including revenues,
operating costs, employee compensation, donations and other
community investments, retained earnings, and payments to capital
providers and governments.
• Significant financial assistance received from government.
Azapagic:
• Breakdown by country of the total sum of all types of taxes and royalties
paid.
• Fines paid for non-compliance (economic, environmental and social).
• Amount of money paid to political parties and institutions whose prime
function is to fund political parties or their candidates.
GRI:
• Policy, practices, and proportion of spending on locally based suppliers at
significant locations of operation.
Azapagic:
• Percentage of contracts that are paid in accordance with agreed terms,
with an explanation, if appropriate.
• Percentage of local suppliers, relative to the total number of suppliers.
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3. A Review of Sustainability Frameworks and Indicators for the Mining Industry
Composition of work force
and governance bodies per
category according to gender,
Local, gender minority group membership,
and indigenous locality, indigenous and other
participation indicators of diversity across
all ranks of organization
(senior level, middle
management, entry-level).
The development of
infrastructure and services
for public benefit provided
Infrastructure through in-kind, commercial
investment or pro bono engagement (e.g.,
schools, hospitals, community
infrastructure, energy
infrastructure).
The ownership of shares
Ownership
among employees.
Table 13. Mine-Level Sustainable Development Indicators on Economic Issues
GRI:
• Composition of governance bodies and breakdown of employees per
category according to gender, age group, minority group membership,
and other indicators of diversity.
• Ratio of basic salary of men to women by employee category.
• Total number of incidents of discrimination and actions taken.
• Procedures for local hiring and proportion of senior management hired
from the local community at locations of significant operation.
Azapagic:
• Percentage of women employed relative to the total number of
employees.
• Percentage of women in senior executive and senior and middle
management ranks.
• Percentage of ethnic minorities employed relative to the total number
of employees, with an explanation of how representative that is of the
regional or national population makeup.
• Percentage of ethnic minorities in senior executive and senior and middle
management ranks.
• Summary of the equal opportunity policy.
• Percentage of sites with “fly-in, fly-out” operations relative to the total
number of sites.
• Percentage of employees sourced from local communities relative to the
total number of employees.
GRI:
• Development and impact of infrastructure investments and services
provided primarily for public benefit through commercial, in-kind, or pro
bono engagement.
• Understanding and describing significant indirect economic impacts,
including the extent of impacts.
Azapagic:
• Percentage of revenues that are redistributed to local communities from
the relevant areas of operation, relative to the net sales.
• Investments into community projects (e.g., schools, hospitals,
infrastructure) as percentage of net sales.
Azapagic:
• Percentage of employees that are shareholders in the company.
3.5. CORPORATE REPORTING
The Global Reporting Initiative’s (GRI’s)
Sustainability Reporting Guidelines and Mining
and Minerals Sector Supplement are the central
reporting frameworks for mining companies.
With over 2,000 companies using the framework
across a range of sectors, it is the leading and
most widely accepted sustainability reporting
and indicator system globally. Members of the
ICMM, which represent 22 of the largest mining
companies in the world, are required to report
against the ICMM Sustainable Development
Framework Principles in accordance with these
GRI frameworks. Furthermore, national mining
organizations such as the Minerals Council of
Australia require that applicable companies
commit to issuing public reports that may be
self-selected from the GRI frameworks (KPMG,
GRI & UNEP, n.d.). Governments may also
encourage the uptake of GRI—for example,
Canada’s Corporate Social Responsibility
(CSR) Strategy for the International Extractive
Sector promotes the GRI guidelines to enhance
transparency and encourage market-based
rewards for sustainability performance. In 2012,
165 companies in the mining and metals sector
Figure 9. GRI Mining and Metals Sector Reporting Trend (2008–2012)
Source: Global Reporting Initiative (2013)
reported against the GRI globally, representing a
50 per cent increase between 2009 and 2012. In
addition, 48 per cent of these companies obtained
external assurance for their sustainability reports
in 2012.
Finally, there are a number of reasons for the
growth in the uptake of sustainability reporting
across sectors and in the mining sector in
particular. In the context of the mining sector, a
wide range of stakeholders, including investors,
local communities, employees and host country
governments are particularly interested in the
environmental, economic and social performance
of a company given that mining is an activity
that can be particularly harmful if improperly
controlled. Companies that are transparent
about these practices can demonstrate a level of
satisfactory performance to these stakeholders
and thus benefit from enhanced corporate
reputation, brand integrity, ease of recruiting
and training, project financing, social license
to operate and so on. There are also sources of
competitive advantage that can be derived from
greater operational efficiencies, as well as the
generation of innovative processes. As a result,
net operating cash flows and shareholder value
can be improved.
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3. A Review of Sustainability Frameworks and Indicators for the Mining Industry

Benefits of good sustainable Value drivers:

development management
and reporting:
Revenue growth
Strengthen corporate reputation
Enhance brand integrity
SUSTAINABLE
Operating margins
Lower risk profile SHAREHOLDER
Deliver operational efficiencies
Provide new access to opinion formers
Asset efficiency VALUE
Ease of recruiting and retaining Expectations
Access project financing
Preserve license to operate
Increase customer loyalty
Generate innovative products and services
Support to long-term planning

Figure 10. The Corporate Value of Sustainability Practises and Reporting

Source: Deloitte (2007).

3.6. SUSTAINABILITY PRACTICE formulate principles and criteria to reflect

AND REPORTING REQUIREMENTS
AT THE COUNTRY LEVEL
A number of countries have shown leadership
in the promotion of sustainable mining practices
and reporting. Some of these countries are
discussed below. At the intergovernmental level,
the IGF’s Mining Policy Framework (MPF) is being
promoted as a comprehensive model that, if
implemented, can allow the mining sector to
make its maximum contribution to sustainable
development in developing countries. In addition,
the OECD’s Policy Dialogue on Natural Resource-
Based Development, which is part of the OECD’s
Strategy on Development, has aimed to foster
knowledge sharing and learning among producing
countries on how to ensure more inclusive and
broad-based development in the extractive
sectors.
Below, we provide examples of the state of
sustainable development strategies, reporting
and indicator systems of relevance to mining in
leading countries. These governments have taken
the initiative to explore important sustainable
development issues in mining through formal
committees and multistakeholder processes,
their approach, and, where needed, reform the
regulatory environment. Most of these countries
either have or are in the process of implementing
monitoring systems and reporting requirements
on the environmental, social and economic
performance of mining.
Ecuador: In Ecuador, the Mining Law (2009)
regulates the mining sector in accordance with
the principles of sustainability, precaution,
prevention and efficiency, and requires all holders
of mining rights to maintain information on the
consumption of materials, energy and water and
other sustainability impacts (GRI, 2014a). The
holders of mining rights must also present annual
audits that verify environmental compliance.
In addition, in accordance with the Ministerial
Agreement 131, all state-owned companies are
required to report annually on good environmental
practices indicators. Every year, an award is
given to the state-owned company that reduced
environmental contamination by the largest
percentage. Furthermore, all companies listed
on the Guayaquil Stock Exchange are required
to assess their contribution to sustainable
development on an ongoing basis, based in part on
environmental indicators taken from the GRI.
Indonesia: In Indonesia, Regulation No. 24/2012
(2012) regulates the energy and mining sectors
and requires that any company in mineral
or coal concessions provide four-month and
yearly reports on environmental protection and
community development (GRI, 2014b). In addition,
in accordance with the State Owned Enterprise
Minister Regulation No. SE-443/MBU/2003 (2003)
and No. KEP-05/MBU/2007 (2007), all state-
owned enterprises must report on environmental
development, as well as partnership and
community development programs in an audited
report (GRI, 2014). Furthermore, Government
Regulation no. 47/2012 (2012) states that Limited
Liability Companies that have business activities
related to natural resources have an obligation
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3. A Review of Sustainability Frameworks and Indicators for the Mining Industry
towards social and environmental responsibility
to be carried out by the Board of Directors (GRI,
2014b). It is required that information about the
implementation of these practices is contained
in the company’s annual report. Similarly, publicly
listed companies have to submit corporate social
responsibility information on topics including
environmental performance, and labour and
community practices to the Capital Markets
Supervisory Agency in accordance with Regulation
No. KEP-431/BL/2012 (2012) (GRI, 2014b).
South Africa: In South Africa, the Sustainable
Development Through Mining Program (SDM)
was initiated by the Department of Mineral and
Energy in 2004 to investigate how the mining
industry can best contribute to a national and
global transition to sustainable development. As
part of this investigation, a set of indicators was
developed to monitor mining’s contribution to
sustainable development (Department of Minerals
& Energy, 2014). In compiling these indicators, the
SDM reviewed frameworks including the MMSD
reports, ICMM principles and the GRI. The Mineral
and Petroleum Resources Development Act (2002)
and its Amendment Bill (2012) require mining
companies to disclose social and labour plans to
governments and describe how the social impacts
of their operations are to be addressed during and
after operations (GRI, 2014c). Further, the Natural
Environment Management Act (1998) requires an
environmental impact assessment that is to be
reported to the authorities. Companies listed on
the Johannesburg Stock Exchange must produce
an integrated report that details environmental
and social performance, as per the King III Code
(2009) on an “apply or explain” basis (GRI, 2014c).
India: In India, a high-level committee was
initiated in 2005 to review the National Mineral
Policy with the aim of introducing best practices
in environment management and sustainable
development for the mining sector (Government
of India, 2012). After studying the sustainability
impacts of mineral development and global trends
in sustainable development, the Committee
recommended the creation of a Sustainable
Development Framework (SDF) that would
take into account the work of, specifically, the
ICMM and the IUCN, and would be composed
of principles, reporting recommendations and
good practice guidelines. As a document of the
Indian Ministry of Mines, the SDF, released in
2011, is being driven forward by efforts to include
some of its elements into regulation, undertake
joint performance reviews against the SDF, and
evaluate applications using additional criteria
from the SDF for environmental and other issues.
Canada: In Canada, sustainable development in
the mining sector has been an area of leadership
for decades. In 2009, a Social License Task Group
was assembled by national and subnational
governments to develop an evidence-based
evaluation model of the social, environmental
and economic performance of the mining sector
(Government of Canada, 2010). The indicators
underlying this model were selected on the basis
of international mining practice and the inputs
of an external advisory committee, as well as
the availability of data. Two reports have since
been produced and presented to national and
subnational mining ministers in 2010 and 2013
based on this framework.
Chile: In Chile, the Environmental Assessment
Service, which is the agency responsible for
assessing projects against the Environmental
Act, has undertaken initial explorations of the
prospect of using indicator systems to monitor
the environmental impacts of the mining industry,
using the DPSIR framework (Escobar Serrano,
2012). As a result of this investigation, it proposes
that differentiating between Pressure and Impact
indicators is an important element to incorporate
within formal indicator systems. See Box 5.
Box 5. Chile’s Environmental Assessment Service Exploration of Incorporating DPSIR within Formal
Indicator Systems. Source: Escobar Serano (2012)

THE DPSIR INDICATOR SYSTEM IN THE DIRECT INFLUENCE AREA

PRESSURE STATE IMPACT RESPONSE

Loss of high mountain

vegetation
Mitigation Measures to reduce the impacts: 1) Relocation of
Loss of wildlife habitat
wildlife, 2) Ex situ reproduction of vegetation and wildlife, 3)
Hectares of
Maintaining genetic vegetation and wildlife, 4) Relocation of
A1. Occupation fertile soil and Death and displacement of
heritage sites.
of Land high mountain wildlife.
vegetation
Repair Measures to repair the impact generated we find the
Reduction of landscape
Closure Plan of the mining project (restoring habitat).
quality

Disturbance of heritage sites

A2. Atmospheric Respiratory diseases.
emissions
Concentration Mitigation Measures to reduce the pressures: 1) Domes
(traffic activity, Loss of wildlife habitat
of air airtight with negative pressure, 2) Hermetic conveyor belts,
crushing stage,
pollutants. 3) Stabilization of roads, 4) Technology feedback, etc.
milling of ore, Reduction of landscape
etc.). quality
A3. Liquid
Eventually disease people,
industrial waste Concentration
wildlife and high mountain Mitigation Measures to reduce the pressures: 1) Efficient
of pollutants
vegetation. Waterproofing Systems, 2) Containers for spillage, 3)
Dumping of in rivers and
Contingency systems.
rivers and groundwater
Loss of wildlife habitat
groundwater
Discomfort and possible
A4. Noise Concentration diseases. Mitigation Measures to reduce the pressures: 1) Install noise
emissions. noise. barriers, 2) Establish appropriate schedules
Loss of wildlife habitat
Mitigation Measure in order to reduce the pressure favoring
Soil loss and habitat. underground mining and not open pit.
Quantities
A5. Aggregate
and extraction
extraction. Reduction of landscape Repair Measure in order to repair the impact generated
surfaces.
quality is necessary to implement actions in the Closure Plan
(reprofiling slope, ground cover and restore habitat)
Landscape
Reduction of landscape value Mitigation Measures to reduce the pressure: 1) underground
A6. Cutting value
infrastructure, 2) Roads under the infrastructure to not
infrastructure
Cut the biological wildlife interfere with the biological wildlife corridor.
(power lines, Presence and
corridor
roads, water number of
Repair Measures to repair the impacts, there should be a
lines, etc.). species of
Loss of wildlife habitat system of recognition and rehabilitation of affected wildlife.
wildlife
Mitigation Measures to reduce the pressures: 1) infiltration
systems and uncontacted water diversions, 2) desalination
Decrease the underground plants, 3) snow collection systems.
The water level.
A7. Extraction of
underground Mitigation Measure to reduce the impacts is a Program to
groundwater.
water level. Shortage of water that encourage rain.
sustains biodiversity sectors
Repair Measures to repair the impact generated water is
reinjected into the aquifer.

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4. Review of Indicators for Water, Energy and Food Security
4. REVIEW OF INDICATORS FOR
WATER, ENERGY AND FOOD
SECURITY
W ater, energy and food (WEF) security is a
key component of sustainable development
and, as such, is a way of operationalizing
sustainable development in the context of a
region, watershed or community. Building on
our review of mining initiatives to incorporate
sustainability, this section looks at identifying
initiatives that have incorporate WEF security
into indicator frameworks irrespective of sectoral
activities (e.g., mining). This section reviews and
contrasts these indicator systems, while providing
illustrative samples of their indicators and high-
level categories. WEF security is the third and final
link in the causality chain linking the sustainability
impacts of mining projects to their ultimate effect
on WEF availability and access. Therefore, a key
outcome of this chapter is to understand how
WEF security itself is measured and monitored
at the national, local and household levels. By
understanding the context of a mining project
on the one hand and WEF security on the other,
policy-makers and business
decision-makers will be better equipped to
analyze and assess the links that join the two
together.
While there exists a good number of previous
initiatives that have explored assessment
methods and indicators for the individual
components of WEF security, there are limited
examples of indicator systems and decision-
support tools that consider the interlinkages
across the three domains. The work of the Food
and Agriculture Organization (FAO) of the
United Nations has pursued the assessment and
monitoring of the WEF security nexus in two
different initiatives—these are summarized in
Section 4.1. Examples of assessment methods
and indictors for the individual water, energy and
security components are featured in Sections 4.2
through 4.4.
4.1. INTEGRATED ASSESSMENT OF
THE WEF NEXUS
The FAO (Flammini, Puri, Pluschke, & Dubois,
2014) has developed a WEF nexus assessment
approach aiming to: 1) understand the interactions
between water, energy and food systems in a
given context; and 2) evaluate the performance
of a technical or policy intervention in this given
context. Ultimately, the approach developed by
FAO informs the development of WEF security-
related responses in terms of strategies, policies,
planning and institutional support. The approach
suggests using a stakeholder engagement process
to define WEF-related goals at the appropriate
level, with individual goals for water, energy and
food. Sustainability aspects in individual water,
energy and food systems are highlighted and
interlinkages between them are defined. There key
aspects are defined as follows:
Sustainable water:
• Access to water resources for different uses
• Sustainable use and management of water
resources
• Societies and ecosystems that are resilient to
water-related disasters
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4. Review of Indicators for Water, Energy and Food Security

Sustainable Energy: Food Security:

• Access to modern energy services • Food availability

• Efficient use of energy • Food access

• Energy produced and consumed is clean/ • Food utilization and nutrition

renewable • Stability of food prices and supply

The indicators compiled under these different

categories are listed in Tables 15, 16 and 17.

CATEGORY INDICATORS

Water pumping and groundwater management: Percentage of annual freshwater withdrawals by sector; per
capita renewable water resources; groundwater abstraction/exploitable groundwater; groundwater quality;
salinity of groundwater.

Energy for clean drinking water: Sources of drinking water (piped water, well water); water within 15 minutes;
median time to water; desalinated water produced annually.
ACCESS TO
MODERN Water for power generation: Cooling water required for conventional power plants; total hydropower capacity;
ratio hydropower/total energy supply.
ENERGY
SERVICES Irrigation systems: Area equipped for power irrigation; % of area that is equipped for irrigation.

Water pollution by fossil energy use: Contaminant discharges in liquid effluents from energy systems; oil
discharges into coastal waters.

Households: Percentage of households without electricity or commercial energy; % household income spent
on fuel and electricity; % population with access to electricity; energy use per capita.
Energy efficient water technologies: Productivity of irrigated agriculture; independence from imported water
and goods; % renewable water stored in large dams; consumption rate of water; utilization of total hydropower
capacity; ratio of hydropower to total energy supply; % people using different water pumping technology.

Irrigation systems: Area equipped for power irrigation; % area equipped for irrigation that is power irrigated;
EFFICIENT USE % energy for transporting water for agriculture.
OF ENERGY
Management of water by utilities: Percentage of water distribution losses by water utilities.

Water productivity in agriculture: Cubic metres of water used per unit of value added by sector.

Household: Household energy intensity.

Dams and hydropower: UJtilization of total hydropower capacity; ratio of hydropower to total energy supply;
total dam capacity (national); primary production of renewable energy.

Bioenergy production: Water withdrawn for processing feedstock and bioenergy; transport energy intensities;
bioethanol and biodiesel production.

CLEAN/ Fossil fuel pollutants: Renewable energy share in national energy and electricity generation; % of increased
access to modern energy services due to bioenergy.
RENEWABLE
ENERGY Bioenergy competition with food and water use: Pollutant loadings attributable to fertilizer and pesticide
application for bioenergy feedstock production.

Energy for irrigation system: Area equipped for irrigation drained; % total cultivated area drained; % total
area equipped for full control surface irrigation drained.

Cross-cutting/high-level: Percentage renewable energy/ total energy; fossil fuel energy consumption.
GENERAL
Percentage of people with improved water access (piped water); access to improved sanitation; annual
INDICATORS OF
freshwater withdrawals by sector; water pollution as % of BOD emissions; % improved sanitation facilities;
SUSTAINABLE investment in water sanitation; people affected by water-related diseases.
ENERGY

Table 14. Water-Energy Security Nexus

Source: Flammini, Puri, Pluschke & Dubois (2014)
 CATEGORY INDICATORS

Total allocation by sector: Total water withdrawal (km2/year) by agriculture, industry and municipality;
agricultural, industrial and municipal withdrawals as % total water withdrawal; duration, magnitude, timing of
deficiency in delivery of water demand.

Livestock production: Livestock total per hectare of agricultural area (livestock/ ha); bacterial numbers and
the presence of coliform organisms; feed-water productivity and feed conversion efficiency.
ACCESS
TO WATER Inland fisheries and aquaculture: Change in freshwater fish production (aquaculture and capture/yr); levels
of ph; levels of alkalinity; nitrogen and phosphorous concentration
RESOURCES
FOR DIFFERENT Economic water scarcity: Rural population with access to water supply; % investment in irrigation/total
USES public spending

Provision of clean and safe water for food preparation: Percentage of population with access to improved
water source (urban and rural); % population with access to an improved sanitation facility; population
affected by water borne disease; number and % of population that is undernourished; % population using
improved water technologies and sanitation facilities; household dietary diversity and number of meals per
day; average household water usage/day.
Availability of freshwater resources for agriculture: Precipitation in volume; internal renewable water
resources; total actual renewable water resources; total actual renewable water resources per capita;
dependency ratio.

Crop production: Percentage of the cultivated area equipped for irrigation; value of irrigated output as share
of total agricultural output; value of irrigated output as multiple of value of rain-fed output; % freshwater
withdrawal as % total actual renewable water withdrawal; total groundwater abstraction/exploitable
groundwater; brackish/saline groundwater at shallow and intermediate depths; area salinized by irrigation of
total harvested irrigated crop area (ha); % salinized soils by irrigation/arable land; % area equipped for full
control surface irrigation drained; use of agricultural pesticides and fertilizers (nitrogen, phosphate, potash);
share of major ions, metals, nutrients, organic matter and bacteria in watershed.

Livestock production: Concentration of nitrogen, ammonia and phosphorous; concentration of antibiotics in

watershed.

Groundwater resources: Actual renewable groundwater resources; actual groundwater entering and leaving
SUSTAINABLE the country; wastewater resources; direct use of treated municipal wastewater for irrigation purposes/total
treated municipal waste water; direct use of agricultural drainage water; produced municipal wastewater;
WATER
treated municipal wastewater.
MANAGEMENT
Water desalination for irrigation: Desalinated water production; desalinated water used for irrigation (km2/
yr).

Land use: Runoff co-efficient; net recharge rate of groundwater; erosion rate or sediment load in river/
upstream drainage area; net annual rates of conversion between land-use types caused directly by bioenergy
feedstock production.

Water-forestry interactions: Net annual rates of conversion between land-use types caused directly by
bioenergy feedstock production.

Social water stress: Renewable water resources per capita (m3) adjusted by HDI; relative social water stress
index; share of food expenditure for the poor.

Water storage: Total dam capacity; total dam capacity per capita; total exploitable water resources
disagreggated by total regular and irregular renewable surface groundwater; water storage capacity per
person.

Table 15. Food-Water Security Nexus

Source: Flammini, Puri, Pluschke & Dubois (2014)

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4. Review of Indicators for Water, Energy and Food Security

Water stress due to agriculture: Total freshwater withdrawals by irrigated agriculture; surface and
groundwater withdrawals for agriculture as % total renewable water resources; agricultural water security
index; area salinized by irrigation.

Dependency on food imports: Dependency ratio; cereal import dependency ratio; depth of food deficit.
RESILIENT
Food prices increase during water-related disasters: Domestic food price index; % water expenditure as
SOCIETIES AND
total of household expenditure; domestic food price index of key food and non-food commodities.
ECOSYSTEMS
Water governance: Global corruption report in the water sector.

Climate change and agricultural water management: Precipitation variability; total agricultural water
managed area. Total area of agriculture; % area equipped for irrigation actually irrigated; area equipped for
irrigation by type of irrigation (surface, sprinkler, localized); area that is potentially irrigable.
GENERAL
Average value of food production; average dietary energy supply adequacy; import quantity index of
INDICATORS OF
agricultural products; change in cropland use; area of land/soils under sustainable management; domestic
SUSTAINABLE food price volatility; per capita food production variability; per capita supply variability.
WATER

Table 15. Food-Water Security Nexus

Source: Flammini, Puri, Pluschke & Dubois (2014)

CATEGORY INDICATORS

Yields increase and income: Energy used in agriculture and forestry; agricultural machinery, tractors in use in
agriculture; direct on-farm energy consumption; direct use of fossil fuel energy in agriculture per unit value
output.

Energy for irrigation and improved yields: Energy for power irrigation in agriculture per agricultural
production; energy consumed in fisheries per fish product production.

Increased yields on food prices: Agricultural machinery, tractors in use; share of household income spent on
fuel and electricity.

Food processing technology: Household energy use for each income group and corresponding fuel mix;
ACCESS TO reduction of food loss/amount of energy used for food processing.
MODERN
Cooking: Forest area damaged by human activity: forest operations and other; % population using solid
ENERGY fuels; % households using traditional fuels (disaggregated by fuel).
SERVICES
Renewables: Bioenergy used to expand access to modern energy services; total volume of removals from
forests; woodfuel from forests in volume; MEPI Index.

Energy subsidies and high/stable yields: Variation of production of the four main; crops/modern energy used
in agriculture.

Underground water pumping: Percentage of agricultural land classified as having moderate to severe water
erosion or wind risk.

General: Percentage of households without electricity or commercial energy, or heavily dependent on non-
commercial energy; energy use (kg oil equivalent) per USD1,000 GDP.

Table 16. Food-Energy Security Nexus

Source: Flammini, Puri, Pluschke & Dubois (2014)
 Agricultural productivity: Change in yield/amount of modern energy used for farming; agricultural energy
intensities; energy used in agriculture per gross agriculture production.

Energy efficient and economic return: Economic value of food products/ reduction of use of non-renewable
energy in agriculture.
EFFICIENT USE
Livestock production: Size of “animal waste to energy” systems in the country.
OF ENERGY
Improved cooking efficiency: Percentage of households with access to modern cooking energy.

New technologies and practices in agriculture: Agriculture, value added of GDP.

Food transport: Energy associated with transport of a national food basket.

Energy bill: End-use energy prices by fuel and sector; economic value of agricultural products; net energy
imports; pump price of gasoline and diesel (USD/litre); direct on-farm energy consumption, per agricultural
produce.

Bioenergy: Woodfuel production by volume and value; land use and land-use change related to bioenergy
feedstock production; % land used for new bioenergy production; bioethanol and biodiesel production; pump
price for gasoline and diesel; total jobs in bioenergy sector.
CLEAN/
Renewables: Percentage of renewable energy used in agriculture as a proportion of total energy used in
RENEWABLE
agriculture.
ENERGY
Wood energy: Forest area damaged by human: forest operations and other; change in forest area over the
last 10 years as a % of total forest area.

Delinking the food and energy markets: Percentage of renewable energy used in agrifood system; change in
consumption of fossil fuels and traditional use of biomass.

Fossil fuel energy consumption: Primary production of renewable energy.

GENERAL Average value of food production; share of food expenditure for the poor; domestic food price index; depth
INDICATORS OF of food deficit; prevalence of food inadequacy; cropland per gross production value of agriculture; % people
SUSTAINABLE with access to improved water access; access to improved sanitation; domestic food price volatility; per
ENERGY capita food production variability; per capita food supply variability.

Table 16. Food-Energy Security Nexus

Source: Flammini, Puri, Pluschke & Dubois (2014)

Using an integrated analysis approach called the
Multi-Scale Integrated Assessment of Society
and Ecosystem Metabolism (MuSIASEM), the
FAO has used three case studies to demonstrate
how “flows” of food, energy, water and money are
interconnected, and how these influence each
other (Giampietro, et al., 2013). The three case
studies include:
1. An analysis of the option to produce biofuel
from sugarcane in the Republic of Mauritius.
This country uses 78 per cent of its agricultural
lands and 90 per cent of its water for
producing sugar cane. Comparisons are made
to another scenario in which Mauritius uses
this land and water to produce food crops to
improve self-sufficiency. It offers suggestions
as to how these options would affect WEF
security for the people of Mauritius.

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4. Review of Indicators for Water, Energy and Food Security
2. An exploration of the future of grain
production in the Indian state of Punjab.
Punjab contributes 45 per cent of the wheat
and 25 per cent of the rice to India’s central
food pool. The case study explores whether
it may be desirable to reduce subsidies on
electricity for groundwater pumping and
minimum support prices for food grain
purchases from farmers, from a WEF security
perspective.
3. An assessment of two alternative energy
sources to produce electricity in the Republic
of South Africa. Concentrated Solar Power
(CSP) was compared with wood biomass for
electricity production in terms of their ability
to meet demand for electricity consumption in
place of fossil fuels.
4.2. WATER SECURITY
INDICATORS
Water security is often seen as a multilevel
construct, as it is a critical variable for
development and human well-being across
different societal functions. In particular, a
society enjoys water security (Asian Development
Bank, 2013) when it successfully manages water
resources to:
• Satisfy household water and sanitation needs
in all communities (drinking water, sanitation,
hygiene).
• Support productive economies in agriculture,
industry, and energy.
• Develop vibrant, livable cities and towns (water
supply, wastewater treatment, drainage).
Box 6. Water Security Indicators Across Five Dimensions
• Restore healthy rivers and ecosystems
(watershed disturbance, pollution, water
resource development, biotic factors).
• Build resilient communities that can adapt
to change (exposure, vulnerability, coping
capacities).
This five-dimensional framework recognizes the
tensions between different uses of water (e.g.,
economic vs. household), but also contributes to
building a shared vision by providing the basis for
a comprehensive definition of water security.
The water tensions between development projects
(i.e., mining) and residential communities can thus
be seen in terms of the dynamics of competing
uses for water between economic and household
actors. The indicators underlying this framework
are presented in Box 6.
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4. Review of Indicators for Water, Energy and Food Security

Household Water Security Indicators Environmental Water Security Indicators

• Access to piped water supply (%) • Cropland

• Access to improved sanitation (%) • Imperviousness

• Hygiene (age-standardized disability • Livestock density

adjusted life years per 100,000 people for
the incidence of diarrhea) • Wetland disconnection

Economic Water Security Indicators • Soil salinization

• Productivity of irrigated agriculture • Nitrogen

• Independence from imported water and • Phosphorous

goods
• Mercury
• Resilience (percentage of renewable water
• Pesticides
resources stored in large dams)
• Total suspended solids
• Productivity (financial value of industrial
goods relative to industrial water • Organic loads
withdrawal)
• Potential acidification
• Consumption rate (net virtual water
consumed relative to water withdrawn for • Thermal impacts from power plant cooling
industry)
• Dam density
• Utilization of total hydropower capacity
• River network fragmentation
• Ratio of hydropower to total energy supply
• Relative water consumption compared to
Resilience to Water-Related Disasters supply
Indicators
• Agriculture sector water stress
• Exposure (e.g., population density, growth
rate) • Residency time change downstream from
dams
• Basic population vulnerability (e.g., poverty
rate, land use) • Non-native species

• Hard coping capacities (e.g., • Catch pressure

telecommunications development)
• Aquaculture
• Soft coping capacities (e.g., literacy rate)
Urban Water Security Indicators

• Water supply (%)

• Wastewater treatment (%)

• Drainage (measured as the extent of

economic damage caused by floods and
storms) Source: Asian Development Bank (2013)
Water security is also sometimes referred to as
a way to articulate the role of water in national
and international peace and stability due to
its transboundary nature and significance as
a “fugitive resource” (UNEP, 2006). However, it
also extends to how a country manages its own
water resources to achieve stability and economic
development (Mason & Calow, 2012). In regions
with uneven temporal and spatial distribution of
water, supports such as water storage, hydraulic
infrastructure, distribution and groundwater
availability are especially salient determinants of
economic growth and well-being.
WATER
COPING CAPACITY
STRESS
LOW
Water security issues:
• Vulnerability to floods
• Pollution
• Increasing need for water and sanitation services
LOW Increasing water security through:
• Development of an appropriate stock of
infrastructure (storage, flood control, etc.)
• Proper legislation and adequate institutions
• Integrated and comprehensive water planning
Water security issues:
• Water demand growing fast
• Water availability falling to crisis level
• Overexploitation of groundwater
• Shortages compounded by pollution
• Low efficiency of irrigation
• Vulnerability to floods/droughts
HIGH
Increasing water security through:
• Optimal mix of increasing supply and managing
demand
• Strengthening the institutional capacities and
adopting a more cohesive and integrated legal • Strengthening waste water and pollution control
framework
• Developing appropriate mechanisms for inter-
sectoral water allocation
Table 17. Water Security Matrix
Source: Ait-Kadi and Arriens (2012)
In order to account for the dynamics of different
environmental, climatic, and societal pressures
and feedbacks that affect water security, some
indicator systems differentiate between drivers
and pressures (e.g., Driver-Pressure-State-
Impact-Response frameworks, Pressure-State-
Response frameworks). In doing so, users are
better able to identify and monitor cause and
effect relationships (Global Water Partnership,
2014). In addition, using integrating water
indicators helps ensure that key resources
and processes are taken into consideration
and prevents the occurrence of unintended
consequences from a more siloed approach
(Global Water Partnership, 2014).
HIGH
Water security issues:
• Mitigate for past, present and future pollution
• Ecosystems need for water
• Legal frameworks ensuring access for all
Increasing water security through:
• Effective legal frameworks at a range of scales
• Economic incentives
• Ethical management
Water security issues:
• Declining water resources
• Pollution abatement
• Environmental requirements
• Conflicts of use
Increasing water security through:
• Water conservation and reuse
• Sustainable policies and legal frameworks and
institutions for water management and dispute
prevention and resolution
through enforceable legal and institutional
mechanisms
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4. Review of Indicators for Water, Energy and Food Security

When dealing with household water security
in communities affected by natural processes
such as climate change or human activities
(e.g., mining), there are two factors that precede
all others in their importance: 1) water stress
and 2) capacities to cope with changes. Thus
a community water security matrix can be
developed (Table 17).
At a higher level, UN-Water tracks the
performance of the “water sector from the
perspective of a sustainable development
objective.” It proposes to classify water indicators
as “context indicators,” “functioning indicators”
and “governance indicators.” Through a joint
assessment of these dimensions, it suggests that
a construction of “performance indicators” can be
achieved (UN-Water 2009).
In the specific context of mining, the water system
may be impacted in different ways depending
on the stage of the mining project, raising the
need for different indicators across these stages
(Miranda & Sauer, 2003). The most serious of
these water impacts occur in conjunction with
toxic waste disposal and water consumption at
the extraction and processing phases (Miranda &
Sauer, 2003). Where water issues are divided into
water quality and water quantity concerns, water
quality is thought to be the most significant. The
mining industry is a relatively small user of water
when compared to other sectors like agriculture

CATEGORY DESCRIPTION SAMPLE INDICATORS

• Precipitation
These indicators relate to the natural context (e.g. • Surface water actual
water availability, rainfall), to infrastructure (such as
CONTEXT • Groundwater recharge
water treatment capacity, or storage), or to human
and economic capitals. • Storage capacity
• Irrigation area
• Total water withdrawals
Functioning relates to inputs, outputs and outcomes
• Desalination production
(e.g. water use intensity). These indicators relate to
FUNCTIONING describing the dynamic functioning of the water • Water demand per sector
sector at the national level (e.g. water withdrawals,
• Population connected to drinking water/ sewage
water depletion or wastewater actually treated).
• Water quality (nitrate)
These indicators track the possible explanations
• Water is mainstreamed in development policies
behind the different levels of performance achieved
between a given territory and different benchmark • Formal involvement of stakeholder groups
territories. The breadth of governance indicators
GOVERNANCE • Water resource issue assessment
must embrace territorial water resources and
water uses management to provide an insightful • Regulatory instruments and enforcement
diagnosis of possible weak spots in need of further • Capacity development of government staff
investigation and possible improvement or reforms.
These indicators add an element of evaluation. • Population with access to improved water
Performance assessment relates to considering sources/ sanitation
the functioning of the sector in relation to its
PERFORMANCE objectives and within a given context. Issues of • Changes in agricultural water productivity
efficiency/productivity, effectiveness and impact • Threatened freshwater species
can be considered (e.g. access to water supply and
sanitation or value added in agriculture or industry). • Change in hydropower

Table 18. Categories of Indicators to Understand the Water Sector

Source: UN-Water (2009)
 STAGE POTENTIAL ISSUES

Exploration (surveying, drilling, • Sediment runoff, increased suspended sediment load to surface waters
trench blasting, camp and road
construction, mine construction) • Spills of fuels and other contaminants

• Chemical contamination of surface and ground waters

Mineral extraction (blasting, ore
stockpiling, waste pilling)
Processing (mining, smelting,
refining)
Mine-closure/post-operation
(revegetation, fencing, monitoring
seepage)
• Toxicity impacts to organisms (terrestrial and aquatic plants and animals)
• Altered landscapes from mine workings (e.g., open pits, changes in stream morphology)
Increased erosion and siltation
• Altered patterns of drainage and runoff
• Water consumption: dust suppression, mine camps, evaporative losses from clean water
storage dams, water used to cool equipment
• Decreased groundwater resources due to dewatering pits
• Reliance on power from water-dependent sources (hydro and thermal)
• Discharge of chemicals and other wastes to surface waters
• Water consumption: water used in mineral separation and benefication, slurry lines
• Reliance on power from water-dependent sources (hydro and thermal)
• Persistent contaminants in surface and groundwaters
• Long-term water treatment
• Persistent toxicity to organisms
• Permanent landscape changes

Table 19. Summary of Water-Related Issues at Different Mining Stages

Source: Miranda and Sauer (2003)

and residential consumption. Water consumption
occurs when ores are ground to separate minerals
from the rock; when materials are washed and
transported; to control dust; and to cool machinery
(Miranda & Sauer, 2003). Water quality is affected
through: 1) waste rock and ore stockpiles,
which, being left uncovered, are a source of
acid mine drainage; and 2) tailings, which can
leach into groundwater or contaminate surface
water following an impoundment breach or the
intentional or unintentional release of tailings into
nearby streams (Table 20).
Finally, some indicator systems integrate
water with food security to account for the
interconnections between these systems
(Parris, Way, Metzler, Cicone, Manley, & Metzler,
2002). Precipitation and vegetation dynamics,
for instance, are highly correlated and can be
used to identify the risk and likelihood of food
emergencies as a result of drought or other
related conditions that affect the food system
(Parris, et al., 2002). Water balance, which can
be narrowly defined as the difference between
local water supply and demand or the flow of
water in and out of a system, is also related to
food balance. Additionally, using the World Bank’s
six indicators of “good governance,” it has been
shown that measures of good governance account
for about 80 per cent of the capacity of people
to overcome challenges related to short-term
stressors and food emergencies. This integrated
approach to water and food system monitoring
has also been promoted in an Arctic context,
especially with regards to food safety and water
quality (Nilsson & Evengard, 2013).

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4. Review of Indicators for Water, Energy and Food Security

Figure 11. Water Indicators are Correlated with Food Indicators

Source: Parris et al. (2002)
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4. Review of Indicators for Water, Energy and Food Security

4.3. ENERGY SECURITY to those supporting more sophisticated activities

constituting modern society as experienced in
INDICATORS
industrialized countries (UNDP, 2010).
Energy security is traditionally thought of as a
The International Energy Agency (IEA) and the
national and human security concern, having
International Atomic Energy Agency (IAEA)
emerged in the first half of the 20th century as a
developed a set of indicators for sustainable
concern over the secure supply of fuel for armies
energy development (ISED) that assessed the
and naval fleets (Cherp, et al., 2012). Today, energy
multiple aspects of energy security both at the
security is associated with the need to ensure
household and national levels (IEAE/IEA, 2005).
sustainable energy production, stable supplies and
Some of the most important impacts resulting
control price volatility. The latter of these issues
from poor energy security—aside from economic
is especially harmful to developing countries,
losses—relate to household health. There are
where short blackouts can lead to major economic
ongoing concerns related to: indoor air pollution
losses. At the household level or individual level,
that results from using rudimentary cooking fuels
energy security is attained through sufficient
(dung, charcoal, firewood); physical injury from
access to modern cooking fuels and at least the
fuelwood collection; and poor refrigeration and
bare minimum of electric lighting for reading or
medical care where there is a lack of electricity.
other household and productive activities. As
One important indicator is the extent of disparity
an individual in rural areas or developing moves
among households, for example, between rich and
through the energy ladder, from more simple and
poorer households.
traditional fuels such as animal power, candles
and wood, to more advanced fuels like electricity At the national level, concerns for energy
and refined gasoline, he/she becomes increasingly security put in focus high-level indicators such
energy secure at least in terms of energy quality as the diversification of an energy mix and the
(Sovacool, 2013b). Thus households and countries dependency of imported sources of energy
(as aggregates of households) typically move from (Sovacool, 2013b).
energy systems supporting basic human needs

LEVEL 3
LEVEL 2 MODERN SOCIETY NEEDS

LEVEL 1 PRODUCTIVE USES

BASIC HUMAN NEEDS Modern energy services for many

Electricity for lighting, health, education,
communication and community services
(50-100 kWh per person per year)
Modern fuels and technologies for
cooking and heating (50-100 kgoe of
modern fuel or improved biomass cook
stove)
more domestic appliances, increased
Electricity, modern fuels and other requirments for cooling and heating
energy services to improve productivity: (space and water), private transportation
(electricity usage is around 2000 kWh
• Agriculture: water pumping for per person per year)
irrigation, fertilizer, mechanized
tilling
• Commercial: Agricultural processing
cottage industry
• Transport: fuel

Figure 12. Incremental Levels of Energy Services and Access

Source: UNDP (2010)
Mining projects can affect energy security by exchange gained through mineral exports can
electrifying and catalyzing energy infrastructure help improve the ability to purchase energy
developments in rural areas. Further, the foreign commodities from abroad.

DEVELOPING COUNTRIES
ENERGY DEVELOPED
SECTOR
SERVICE LOW-INCOME MIDDLE-INCOME HIGH-INCOME COUNTRIES
HOUSEHOLDS HOUSEHOLDS HOUSEHOLDS
Household
Cooking Wood (includes wood Wood, residues, dung, Wood, kerosene, biogas, Electricity,
chips, straw, shrubs, kerosene, and biogas liquefied petroleum gas, natural gas
grasses, and bark): natural gas, electricity,
charcoal; agricultural coal
residues: and dung
Lighting Candles and kerosene Candles, kerosene, Kerosene, electricity, and Electricity
(sometimes none) paraffin, and gasoline gasoline
Space Wood, residues, and dung Wood, residues, and dung Wood, residues, dung, Oil, natural gas,
heating (often none) coal, and electricity or electricity
Other None Electricity, batteries, and Electricity Electricity
appliances storage cells
Agriculture
Tilling or Hand Animal Animal, gasoline and Gasoline and
plowing diesel (tractors and small diesel
power tillers)
Irrigation Hand Animal Diesel and electricty Electricity
Post- Hand Animal Diesel and electricty Electricity
harvest
processing
Industry
Milling and Hand Hand and animal Hand, animal, diesel and Electricity
mechanical electricity
Process Wood and residues Coal, charcoal, wood and Coal, kerosene, wood, Coal, napthene,
heat residues residues, and electricity electricity
Primary Technologies
Cookstoves, three stone Improved cookstoves, Improved cookstoves,
fires, lanterns biogas systems, solar biogas systems, liquefied
lanterns, incandescent petroleum gas, gas and
and compact fluorescent electric stoves, compact
light bulbs fluorescent light bulbs,
light emitting diodes

Table 20. The Energy Ladder. Source: Sovacool (2013a)

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4. Review of Indicators for Water, Energy and Food Security

CATEGORY THEME INDICATORS

• Households (or population) without electricity or commercial energy, or heavily
Accessibility dependent on non-commercial energy
• Total number of households or population
• Household income spent on fuel and electricity
SOCIAL Affordability
• Household income (total and poorest 20% of population)
• Energy use per household for each income group (quintiles)
Disparities • Household income for each income group (quintiles)
• Corresponding fuel mix for each income group (quintiles)
• Energy use (total primary energy supply, total final consumption and electricity
Overall use use)
• Total population
• Proven recoverable reserves
• Total energy production
Production
• Total estimated resources
• Total energy production
• Energy use in industrial sector and by manufacturing branch
• Corresponding value added
• Energy use in agricultural sector
• Corresponding value added
ECONOMIC
• Energy use in service/commercial sector
End use
• Corresponding value added
• Energy use in households and by key end use
• Number of households, floor area, persons per household, appliance ownership
• Energy use in passenger travel and freight sectors and by mode
• Passenger-km travel and tonne-km freight and by mode
Prices • Energy prices (with and without tax/subsidy)
• Energy imports
Imports
• Total primary energy supply

Strategic fuel • Stocks of critical fuel (e.g., oil, gas, etc.)

stocks • Critical fuel consumption
• Greenhouse gas emissions from energy production and use
Climate change
• Population and GDP
• Concentrations of pollutants in air
Air quality
• Air pollutant emissions
ENVIRONMENTAL Water quality • Contaminant discharges in liquid effluents
• Affected soil area
Soil quality
• Critical load
• Forest area at two different times
Forest
• Biomass utilization

Table 21. IEAE/IEA Indicators for Sustainable Energy Development

Source: IEAE/IEA (2005)
 • Amount of solid waste
• Energy produced
• Amount of solid waste properly disposed of
Solid waste • Total amount of solid waste
ENVIRONMENTAL
generation and
(CONT.) • Amount of radioactive waste (cumulative for a selected period of time)
management
• Energy produced
• Amount of radioactive waste awaiting disposal
• Total volume of radioactive waste

Table 21. IEAE/IEA Indicators for Sustainable Energy Development

Source: IEAE/IEA (2005)

DIMENSION COMPONENT METRIC UNIT DEFINITION

Total primary energy supply comprises the
production of coal, crude oil, natural gas, nuclear
Total primary Thousand tons
Security of fission, hydroelectric, and other renewable resources
energy supply of oil equivalent
supply plus imports less exports, less international marine
per capita (ktoe)
bunkers and corrected for net changes in energy
stocks
Average reserve
to production
ratio for the Ratio of proven recoverable reserves at the end of
Remaining years
Production three primary a given year to the production of those reserves in
of production
energy fuels that year
Availability (coal, natural
gas, and oil)
% energy
demand by Percentage of total primary energy supply divided by
Dependency Self sufficiency
domestic total primary energy consumption
production
Share of
renewable Share of geothermal, solar, wind, hydroelectric, tidal,
Diversification energy in total % of supply wave, biomass, municipal waste, and biofuel based
primary energy energy in total primary energy supply
supply
Stability of Percentage that retail electricity prices have
Stability % change
electricity prices changed every five years
% population
with high quality Combined percentage of urban and rural electricity
%
Access connections to customers with reliable grid connections compared
electrification
the electricity to all people in the country
grid

Affordability Percentage of the population that relies on solid

Households fuels as the primary source of domestic energy for
% of population
Equity dependent on cooking and heating. Solid fuels include biomass,
using solid fuels
traditional fuels wood, charcoal, straw, crops, agricultural waste,
dung, shrubs and coal
Average price
Retail price of in USD PPP for Actual prices paid by final consumers for ordinary
Affordability
gasoline/petrol 100 l of regular gasoline inclusive of all taxes and subsidies
gasoline/petrol

Table 22. Dimensions, Components and Metrics Comprising National Energy Security
Source: Sovacool (2013a)

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4. Review of Indicators for Water, Energy and Food Security

Expenditures for research and development are

% government current and capital expenditures (both public and
expenditures on private) on creative work undertaken systematically
Innovation and Research research and to increase knowledge, including knowledge of
research intensity development humanity, culture, and society, and the use of
compared to all knowledge for new applications. R&D covers basic
expenditures research, applied research, and experimental
development

Technology Energy
development consumption Total primary energy consumption in British Thermal
Energy efficiency Energy intensity
and efficiency per Dollar of Units per Dollar of GDP (2005 US dollars PPP)
GDP
% electricity Electric power transmission and distribution losses
Safety and transmission include losses in transmission between sources
Grid efficiency
reliability and distribution of supply and points of distribution and in the
losses distribution to consumers, including pilferage
Energy
Years of energy Reserves of coal, oil, gas and uranium divided by
Resilience resources and
reserves left total final energy consumption
stockpiles
Forest area is land under natural or planted stands
of trees of at least 5 min situ, whether productive
Forest area as
or not, and excludes tree stands in agricultural
Land use Forest cover percent of land
production systems (for example, in fruit plantations
area
and agroforestry systems) and trees in urban parks
and gardens.
Improved sources include household connections,
public standpipes, boreholes, protected wells, and/or
% population spring and rainwater collection. Unimproved sources
Water
Water with access to include vendors, tanker trucks, and unprotected wells
Environmental availability
improved water and springs. Reasonable access is defined as the
sustainability availability of at least 20 l a person a day within 1
km of dwelling
Per capita
energy-related Metric tons of Annual tons of sulfur dioxide emissions from fuel
Climate change
carbon dioxide CO2 per person combustion divided by total national population
emissions
Mean score given for the six categories of
Per capita
Metric tons of accountability, political stability, government
Pollution sulfur dioxide
SO2 per person effectiveness, regulatory quality, rule of law, and
emissions
corruption
Worldwide Worldwide Total value in USD of net exports of coal (including
Governance governance governance coke and briquettes), crude petroleum, and natural
rating score gas (including liquefied natural gas)
Annual value of
Trade and energy exports Total government expenditures on direct and indirect
Energy exports
connectivity in 2009 USD energy subsidies divided by the national population
Regulation and PPP — (billions)
governance Cost of energy
Per capita subsidies per % of data points complete for this index out of all
Competition
energy subsidies person (2009 possible data points
USD PPP)
Quality
% data
Information of energy
complete
information

Table 22. Dimensions, Components and Metrics Comprising National Energy Security
Source: Sovacool (2013a)
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4. Review of Indicators for Water, Energy and Food Security

4.4. FOOD SECURITY INDICATORS A systematic review of food security interventions

The Rome Declaration on World Food Security,
which formed the basis of the first Millennium
Development Goals, defined food security as
“when all people, at all times, have physical
and economic access to sufficient, safe and
nutritious food to meet their dietary needs and
food preferences for an active and healthy life”
(FAO, 1996). This definition was reconfirmed
at the World Summit of Food Security in 2009,
and extended to include the four pillars of food
security: “availability, access, utilization and
stability” (FAO, 2009).
suggests that household food access is
determined by a combination of its food
production, household income and household
assets such as food stocks and capital which
may serve as buffers when the food system is in
periods of stress (Ministry of Foreign Affairs of
the Netherlands, 2011). At the local and national
levels, food availability determines the ability of
households to procure sufficient quantities of
food as long as the price of these commodities is
affordable. Further, an extensive list of indicators
was compiled and reviewed to measure the

CATEGORY INDICATORS
• % population malnourished
Food utilization • % children under five years malnourished
• % child mortality under five years
• % of population meeting energy requirements
Food access • % eating three meals/day
• Average energy intake
• % households being food secure all year
Food access stability
• Number of months per year that households declare being food secure
• % living above/below poverty threshold
Household income,
• Average annual income
purchasing power
• Average annual farm income

Household food • % households producing sufficient food

production • Staple food production
• % increase in food price
Food price
• Food price relative to wages
• Buffer food stock, above a minimum stock
Household buffer
• Buffer capital or assets
Production • Yield (kg/ha)
• On-farm added value
Value chain
• Off-farm added value
• Price difference producers (rural)/consumers (urban)
Market regulation
• Farmer use of inputs
• Number of farmers with certificates
• Area certified
Land security
• % of farmers renting out land
• % of farmers renting in land

Table 23. Indicators to Measure the Determinants of Security across Many Aspects of the Food System
Source: Ministry of Foreign Affairs of the Netherlands (2011)
Figure 13. Linkages Between Levels and Food Security Components
Source: Ministry of Foreign Affairs of the Netherlands (2011)
determinants of security across many aspects of
the food system as contained in studies published
in English and French between 2001 and 2011
(Table 23).
A report by FAO suggests a need to organize
indicators in three different analytical categories
to represent the different levels of an evaluation
(Aurino, 2014). As illustrated in Figure 13, the first
category aims to provide a high-level synthesis,
yet still a comprehensive snapshot of food
security at the national level through a core set
of indicators. This first set of indicators facilitates
the comparability of indicators across different
countries or points in time. The second category
aims to provide a list of factors that serve as key
determinants and underlying causes of the food
security status, thus shedding light on possible
actions or points of intervention to improve food
security. The third and final category aims to
capture the structural conditions of food security
through input indicators that help shed light on the
policy framework supporting food security.
Because food, along with water, is such a basic
component of life, risk analysis and early warning
indicators are also important components of
a food security monitoring system (Kaaria,
Mikkelsen, Mwanundu, & Slaviero, 2012). These
allow for the detection of phenomena that can
negatively impact food security and monitor their
occurrence over time. These indicators fall under
three categories (Kaaria, Mikkelsen, Mwanundu, &
Slaviero, 2012) as described below and in Table 24.
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4. Review of Indicators for Water, Energy and Food Security
FAO/CFS
INDICATORS TO
MONITOR FOOD
SECURITY AT
COUNTRY LEVEL
(KEY INDICATORS FOR
MONITORING)
Dietary Energy Supply,
AVAILABILITY DES
(kcal/ per person/ per
Physical supply of food day)
from all possible
sources (i.e. production, Share of dietary energy
net imports, food aid, supply from staples
etc.) (cereals and starchy
roots), %
ACCESS Prevalence of
Undernourishment, PoU,
Physical, economic, and %
social ability to acquire
adequate amounts of Share of food
food through a
expenditure in total
combination of expenditure for the
different sources (i.e.
20% poorest
own stocks, home households, %
production and
collection, purchases,
Perceived food
barter, gifts, borrowing, insecurity, %
remittances, aid, etc.).
UTILIZATION Prevalence of stunting
(height for age), %
a. Households’ use of children 0-59 months
the food to which they
have access Prevalence of wasting
(weight for age), %
b. Individual efficiency children 0-59 months
in biologically
converting nutrients in Prevalence of
order to meet their malnourished women,
specific nutritional and % women with BMI
health needs. <18.5
Figure 14. Categorization of Food Security Indicators on Three Levels of Analysis
Source: Aurino (2014)
UNDERLYING STRUCTURAL
DETERMINANTS CONDITIONS
What are the direct, or proxi- What are the underlying, distal,
mate causes of low performance causes of food insecurity in
in each dimension? each dimension?
(INDICATORS FOR ACTION AND (INDICATORS FOR IN-DEPTH
MODELING) COUNTRY FS ASSESSMENT
Cereal yields, hg/ha
Metereological data
Livestock production index
Natural resources (eg. agricultural land
ppm water...)
Agricultural spending in R&D, %
Agricultural GDP
Inputs agricultural production (eg.
fertilisers use, pest management,
Food imports, % merchandise
extension services...)
exports
Agricultural spending, % GDP
Aid per capita, ton/ per person
Road density, (km of roads per 100
sq. km of land)
Infrastructure (storage facilities, roads...)
Relative level of consumer prices
Governance and civil security
Food prices volatility
Information on markets
GDP per capita, PPP
Economic performance (economic growth,
unemployment...)
Employment to population ratio, 15+,
total (%)
Social Protection expenditure, % GDP
Under five mortality rate, % 1000
Prevalence of children receiving a
minimum acceptable diet, % children
6-23 months*
Women dietary Diversity Index*
Vitamin A supplementation coverage Nutritional programs
rate, % of children ages 6-59 months
Health expenditure per capita, PPP
Consumption of iodized salt, % of
households Information of population health status
(prevalence of HIV, malaria, etc.)
Prevalence of Anemia, % population
Investments in water and sanitation
Improved Water source, % popula-
tion with access Education expenditure per capita,
public-private partnerships
Improved Sanitation facilities, %
Population with access
Female adult literacy
Female enrollment rate, secondary
• Environmental conditions: Environmental
factors such as drought, more variable
rainfalls, seasonal temperatures, El Niño/La
Niña events and flooding are expected to be
increasingly relevant in the face of climate
change.
• Economic conditions: The price of
commodities following the food-fuel price
rise in the 2007–08 crisis and again in
2011–12 has increased interest in the impact
of these events on community and household
food security.
• Governance: In light of various pressures on
the food system, governments have a role
to play in alleviating potential harm on the
population at large and the poor in particular.
A report jointly commissioned by FAO and
the International Indian Treaty Council (IITC)
suggests that efforts are needed to better take
into account the reciprocal culture-land/resource
relationships that are fundamental to indigenous
people (Woodley, Crowley, de Pryck, & Carmen,
2009). More specifically, indicator systems need
to reflect the unique food and livelihood systems

HAZARDS AND SHOCKS

ENVIRONMENTAL CONDITIONS ECONOMIC CONDITIONS GOVERNANCE

Rainfall anomaly /differences
Seasonal rainfall forecast
(medium-term climate outlook)
Macroeconomic data:
• Growth rate
• Inflation rate
• External balance
• Remittances
Consumer price index (CPI) i.e.
real prices, cost of food basket
Coordination of food security
• Program and disaster management
• Sector support and social protection measures
Trade policies
• Regulation of exports and imports
• Import tariffs
Government policy and actions in domestic food markets

Normalized difference vegetation • Strategic food reserves

Food imports
index (NDVI)
• Price stabilization measures
• Safety net programs
Conflicts/IDPs/refugees

• Number of IDPs, refugees and returnees, small arms

El Niño Southern Oscillation flow,
Migration patterns
(ENSO) • Number of incidents
• Assistance provided (food, cash, health, etc.)
• Access to economic/ productive resources

Inundation and floods

Cyclones, hurricanes and

earthquakes

Pest/locust outbreak

Pasture and water shortages

Livestock diseases/death

Table 24. Indicators for Risk Analysis and Early Warning

Source: Kaaria, Mikkelsen, Mwanundu and Slaviero (2012)

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4. Review of Indicators for Water, Energy and Food Security
that underpin the well-being of indigenous
people. Various UN declarations, conventions and
covenants promote indigenous people’s right to
food and include cultural and related indicators. It
is recommended that the Sustainable Livelihoods
framework be used as a tool for understanding
relationships between the cultures of indigenous
people and food/agro-ecological systems in terms
of how interactions with the natural environment
might influence their livelihood, food security and
well-being (Woodley, Crowley, de Pryck, & Carmen,
2009). The indicators were classified according
to five category areas based on evidence from
literature (Woodley, Crowley, de Pryck, & Carmen,
2009):
1. Access to, security for and integrity of lands,
territories, natural resources, sacred sites and
ceremonial areas used for traditional food
production, harvesting and/or gathering and
related cultural and ceremonial purposes.
2. Abundance, scarcity and/or threats to
traditional seeds, plant foods and medicines,
and food animals, as well as cultural practices
associated with their protection and survival.
3. Use and transmission of methods, knowledge
language, ceremonies, dances, prayers,
oral histories, stories and songs related to
traditional foods and subsistence practices,
and the continued use of traditional foods
in daily diet as well as in relevant cultural/
ceremonial practices.
4. Capacity by Indigenous Peoples for
adaptability, resilience, and/or restoration
of traditional food use and production in
response to changing conditions including
migration, displacement, urbanization and
environmental changes.
5. Ability of Indigenous Peoples to exercise
and implement their rights including self-
determination and free, prior and informed
consent, as well as their self-government
structures, to promote and defend their food
sovereignty, which is the ability to control the
policies and mechanisms of food production,
and related aspects of their development.
The IISD’s CRiSTAL Food Security Tool, which
aims to assess how stressors brought about by
climate change may affect the food security of
vulnerable communities, also takes into account
the particular livelihood determinants of affected
households. With this information, it assists
decision-makers and communities in developing
approaches to better adapt to the stressors of
climate change. A set of resilience indicators was
developed to measure how different communities
may be affected by climate change stressors. The
CRiSTAL assessment (Tyler, et al., 2013) is guided
by five levels of questioning (Figure 15):
1. Household food utilization: Which members
of the household have access to which types
of food (e.g., sufficient nutritional value and
equitable sharing of food), and do households
have appliances for cooking and food storage
and whether there are common health issues
that would compromise food utilization (food
safety)?
2. Food access: What are the different groups or
access paths in use by the affected population
and how are these affected by the climate
stressor?
3. Food availability: There are two sets of issues
related to food availability at the community
level. First, for the dominant modalities of
food access analyzed in the previous step,
how is food made available? Second, where a
minority of people is particularly vulnerable
to climate disruptions because of their food
access modalities (e.g., complete reliance
on subsistence production), but this differs
from the dominant pattern of access for the
community as a whole, how is food made
available to this particular group?
 CATEGORY INDICATOR EXAMPLES
• Percentage of lands, territories and subsistence resources used traditionally by Indigenous Peoples for
Access to, security
subsistence and food production to which they still have full access.
for and integrity of
lands, territories, • Percentage of lands, territories and natural resources used traditionally for food production (farming,
natural resources, fishing, hunting, gathering, herding) currently being used by Indigenous Peoples compared to
sacred sites and benchmarks established in the past.
ceremonial areas…
• Frequency of conflict over territory and natural resources, number of court cases and disputes filed.
• Percentage of traditional subsistence food resources (plant and animal) that are intact, viable,
Abundance, productive, healthy and free from contamination (toxins, GMO’s etc.).
scarcity and/ • Changes in monthly/yearly harvests of food plants and animals used traditionally and reasons for any
or threats to decrease.
traditional seeds,
plant foods and • Number of traditional food plants and animals that have been declared endangered, have decreased
medicines, and food in numbers, and/or have disappeared.
animals… • Number of active programs in Indigenous communities to restore plant or animal food species and/or
their habitats and measure the impacts.
Use and
transmission • Percentage of community households that use traditional/ subsistence foods as a regular part of their
of methods, diet, compared to an agreed upon number of years in the past (5, 10 or 25 depending on community
knowledge history).
language, • Percentage of community members who know traditional methods for food gathering/production/
ceremonies, preparation including the traditional language, songs, dances, stories and
dances, prayers,
oral histories, • ceremonies associated with these practices.
stories and songs… • Percentage of indigenous youth in a community/tribe/nation who perceive or express that their
continued use of traditional foods and subsistence practices as relevant in today’s world.
traditional foods…
• Percentage of persons/youth that leave the community on a seasonal, semi-permanent (for at least
two years) or permanent (five years of more) basis for employment/economic/subsistence or other
Capacity by
reasons.
Indigenous Peoples
for adaptability, • Number of new culturally and environmentally sustainable technologies or methods in use or under
resilience, and/ development for food production or related activities.
or restoration of
• Existence of and extent of participation in community-based discussions and decision making
traditional food…
regarding the need and/or desirability for adapting traditional methods and food sources to changing
conditions.
Ability of
Indigenous Peoples
to exercise and • Number of development projects/proposals from outside Indigenous communities that respect and
implement their uphold the rights of free prior informed consent, self-determination and development.
rights including • Number of consultations for program planning, implementation and evaluation with community
self-determination members and representatives by states, outside agencies or other entities.
and free, prior and
informed consent…

Table 25. Indicators on Indigenous Peoples’ Food Security

Source: Woodley, Crowley, de Pyck & Carmen (2009)

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4. Review of Indicators for Water, Energy and Food Security

UNDERSTANDING THE
FOOD SYSTEM

Figure 15. IISD’s CRiSTAL Food Security and Resilience Assessment Framework
Source: Tyler, et al. (2013)

4. Supporting resources and services: For the
main modalities of food access and availability
already identified, what natural and built
resources and services are most heavily relied
on?
5. Supporting organizations and policies:
How does the responsiveness of support
organizations and policies enable the affected
populations to act in the face of food security
and climate change concerns?
 UNDERSTANDING THE RESILIENCE
OF THE FOOD SYSTEM

Figure 15. IISD’s CRiSTAL Food Security and Resilience Assessment Framework
Source: Tyler, et al. (2013)

In operationalizing and measuring these high-level inclusive of the views of affected population,
constructs, indicator systems can be developed and make full use of their capabilities and assets
to keep tabs on food security developments (Table 27).
and inform policy-making (Table 26). The use of
process-based indicators can help ensure that
responses and policy-making are sufficiently

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4. Review of Indicators for Water, Energy and Food Security
SYSTEM RESILIENCE-BUILDING ACTION
Diversify diets for better nutrition: Establish family
gardens and small-scale livestock rearing to
complement diets with vegetables, diary and meat
products; run education campaigns about healthy
diets.
Improve nutrition through equality: Include gender
issues in monitoring systems; build capacity on
gender issues.
UTILIZATION
Improve human health: Increase access to
community health care; raise awareness on disease
prevention; support and ensure the functioning of
health committees.
Food preparation and conservation: Invest in
energy and storage systems, in particular in rural
electrification programs; ensure access to efficient
cook stoves; ensure access to small-scale storage;
ensure access to safe water.
Diversify income sources: Expand tourism
activities; create microenterprises and employment
opportunities, especially for women.
Diversify access strategies and improve nutrition:
Foment microenterprises and tourism; diversify food
ACCESS
production sources and support nutritious diets
through family gardens and small-scale
Livestock rearing; design food aid programs to
support nutritional gaps through the regular school
meals.
Improve land tenure equality: Improve access to
community lands and pastures for poor HHs, free
access to seed banks or create seed funds in banks
available to communities at low interest rates.
Increase sustainable production: Use more resistant
crop varieties, diversify crops, adopt crop rotation
and intercropping methods, adopt agroforestry and
other soil conservation methods (e.g., using organic
AVAILABILITY
fertilizer), micro-irrigation schemes; establish family
gardens & and small-scale livestock rearing. Expand
and increase access to storage: Climate-proof
storage infrastructure (including spatial distribution);
build capacity for low-cost storage (traditional silos);
regular maintenance and monitoring of storage
facilities; improve rural access to electricity/ energy
networks that support storages.
Table 26. Resilience Indicators for the Core Food Systems’ Elements Clustered by their Focus
Source: Zamudio, Bizikova, & Keller (2014)
INDICATORS
• Amount of food consumed by type, quantity and
frequency per household (HH) member
• Percentage of HHs consuming vegetables.
• Records of weight, size, age and weight/age ratios by
women, men and children; infant malnutrition index.
• Rates of infant morbidity.
• Percentage of people affected by respiratory and
gastrointestinal diseases.
• Percentage of people vaccinated against diseases.
• Percentage of HHs with access to a functional
sanitation service.
• Percentage of HHs having attended awareness-raising
talks on hygiene & health related topics.
• Percentage of HHs possessing enhanced cook stoves/
refrigeration systems/ silos.
• Percentage of HHs using safe food preparation
techniques
• Percentage of HHs with more than one storage facility.
• Percentage of HHs with access to electricity.
• Percentage of HHs with access to drinkable water.
• Percentage of HHs with more than one income stream.
• Percentage of HHs dedicating more than x per cent of
their income to food purchase.
• Percentage of income sources available to single women
and to older people.
• Percentage of HHs depending on only one access
strategy throughout the year.
• Percentage of HHs with income during summer season.
• Percentage of HHs consuming vegetables.
• Food products distributed per year through the food aid
program to schools.
• Percentage of income sources for single women/elderly.
• Percentage of HHs possessing (small) amounts of land.
• Percentage of HHs possessing refrigeration systems.
• Percentage of HHs (or producers) possessing more than
one storage facilities.
• Percentage of fishermen affiliated with a cooperative
storage centre.
• Percentage of HHs with access to electricity.
 Local versus external food production: Improve
food transport options and modes; strengthen local • Records of quantity of food produced within community
production by, for example, promoting technology per season/cycle versus imported food.
transfer and available financial mechanisms;
substitute imports for local production when • Percentage of HHs with access to multiple markets.
AVAILABILITY (CONT.)

possible to reduce dependence on foreign markets.

Increase access to markets and better prices:
Organize (or strengthen) producers into
associations/cooperatives to ensure better prices • Number of existing cooperatives.
through wholesale production and lower transaction • Percentage of production (beans, corn and coffee)
costs; improve access to market information; commercialized in cooperatives.
improve storage systems to allow for a better control
of selling times; reduce number of intermediaries; • Available rural credits and % producers with access to
improve access to small funds; support local credits.
and municipal mechanisms to control hoarding • Seasonal price variations of main food items.
behaviours such as through penalties in local risk
management protocols.

Table 26. Resilience Indicators for the Core Food Systems’ Elements Clustered by their Focus
Source: Zamudio, Bizikova, & Keller (2014)

PROCESS INDICATORS
• Number and types of meetings and capacity-building sessions to ensure that the relevant
Vulnerability of policy government officials have a good level of comprehension and knowledge about the regulations and
against climate policies relevant for food security.
hazards • Number and types of policies/strategies in which the mainstreaming of policy on food security was
completed.
Build resilience to • Number of policies whose priority is ensuring universal access.
specific parts of the
system (resource/ • Number of objectives complementary to relevant policies to ensure an integrated approach to
service) resource management (e.g., to water resource management, land management).

• Number of publicly available policy assessment reports.

• Number and types of physical or virtual portals to access information on policy decisions and
reviews.
Transparent and
• Number and types of mechanisms in place for actors to provide regular inputs or opinions on the
responsible decision
implementation and usefulness of the policy.
making
• Number and types of annual forums to discuss and evaluate the policy’s progress with stakeholders.
• Number and accessibility of social audits; audits (modes of dissemination by local office, online,
mail).
• Number of targeted participants from different social groups to ensure well-represented
Multistakeholder participation of stakeholders in consultations for design and implementation of policy.
participation in design
and implementation • Number and types of regular consultations bringing together sectoral representatives (e.g.,
agriculture, rural development, trade, forestry, infrastructure development).
• Number of capacity-building workshops on prevention, mitigation and risk management and how to
Ability to apply
access necessary resources.
lessons learned and
avoid repeating • Ability of the early warning systems and meteorological stations to cover the focus area and
failures and support provide timely information.
best practices
• Number of forums and networks that promote the share of best practices.
• Number and types of resources (including budget) available to regional offices/governments to use
Decentralization to for local needs.
the most effective
level • Types and location of regional committees that feed local information/needs to central office
(frequency and type of information provided to the local level).

Table 27. Process-Based Indicators that Showcase the Design and Implementation of Policies and Programs Aiming to Promote Food Security
Source: Bizikova, Echeverria, Zamudio & Keller (2014)

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5. WEFsat-Mining

5. THE WEF SECURITY ANALYSIS

TOOL FOR MINING: ASSESSING THE
BENEFITS AND IMPACTS OF MINING
ON WEF SECURITY AND IDENTIFYING
KEY ACTIONS AND INDICATORS

T o assist mine operators, community

organizations and policy-makers in better
understanding the influence mining has on
community and regional water-energy-food
security, IISD created the WEF security analysis
tool for Mining (WEFsat-Mining). This tool
translates the conceptual framework outlined
in Section 2 into a practical set of steps for
assessing the benefits and impacts of mine
development on WEF security. This section
provides an overview of the tool and the menu of
indicators that it contains for helping stakeholders
monitor and report on changes in WEF security.
The tool uses the WEF security framework
outlined in Section 2 to engage stakeholders
in an assessment of: (i) the current status (and
linkages) of the availability of and access to water,
energy and food, and the array of infrastructure
(built and natural) and policies that support their
use; (ii) the potential benefits and impacts of
mining on these WEF security components; and
(iii) the actions necessary to realize potential
benefits and mitigate impacts. The tool also
helps users identify indicators that can be used
to track the status and trends of WEF security
components and the potential mining benefits and
impacts, along with progress toward key actions.

5.1. OVERVIEW OF WEFsat-MINING WEFsat-Mining consists of 10 worksheets to

facilitate a comprehensive assessment of WEF
WEFsat-Mining is a Microsoft Excel-based
security in the context of a specific community
analytical tool developed by IISD to enable
or collection of communities, as influenced by an
community and mining stakeholders to obtain
existing or proposed mining operation (Figure 16).
an integrated view of the potential benefits and
impacts of mining operations on WEF security.
A separate document (WEFsat-Mining User
Guidance Manual) outlines in greater detail how
users can navigate this tool.
IISD Resource Book | 88
5. WEFsat-Mining

SECURITY
ENGAGEMENT AND ASSESSMENT
COMPONENTS
Status and linkages Potential mining Actions to realize Summary for
benefits and impacts benefits and mitigate Decision-makers
Availability
1. Community impacts
Profile 5. Mining Profile 10. WEF Security
Access 8. WEF Security Summary
2. WEF Inventory 6. Mining WEF Actions &
(Sources, Uses) Inventory (Source, Indicators
Supporting Uses)
Infrastructure (Built 3. WEF Status 9. Mining Influence
and Natural) (current) 7. Mining WEF Diagram
Influence
4. WEF System
Supporting Diagram
Institutions and
Policies INDICATORS AND MONITORING

Figure 16. IISD’s WEF Security Analysis Framework Applied to the

Assessment of Potential Mining Benefits and Impacts

5.2. WEFsat-MINING WORKSHEETS • Worksheet #4 – WEF System Diagram:

A systems mapping palette to enable a
A summary of each of the 10 worksheets is facilitator to work with stakeholders to visually
provided below. For details, refer to WEFsat-Mining draw the existing sources and uses of water,
User Guidance Manual. energy, and food and their linkages.

Status and Linkages Potential Mining Benefits and Impacts

• Worksheet #1 – Community Profile: To • Worksheet #5 – Mining Profile: To describe

identify and describe the communities that
are situated within the WEF systems of the
existing or proposed mining operation.
• Worksheet #2 – WEF Inventory: To identify the
sources and uses of water, energy and food
in the communities and the linkages among
them (i.e., electricity used to power water
pumps that are used to irrigate crops).
• Worksheet #3 – WEF Status: To describe
the current status of the WEF security
components relevant to each water, energy
and food source (i.e., availability, access,
supporting infrastructure [built and natural],
and supporting institutions and policy).
the characteristics of the existing or proposed
mining development at two specific points
in time: full operations and full closure. The
temporal perspective is important, as the
potential benefits and impacts of mining may
be different during operations and after the
mine closes.
• Worksheet #6 – Mining WEF Inventory: To
describe any new water, energy and food
sources introduced by the mine, as well as the
new uses resulting from the mine.
• Worksheet #7 – Mining WEF Influence: To
identify the potential benefits and impacts of
mining (during both operations and closure)
on the availability and accessibility of key
IISD Resource Book | 90
5. WEFsat-Mining
sources of water, energy and food as well
as the supporting infrastructure (both built
and natural) and supporting institutions and
policies.
Actions and Indicators
• Worksheet #8 – WEF Security Actions and
Indicators: This worksheet compiles all of the
potential benefits and impacts of mining in
one place and enables stakeholders to work
together to identify key actions to help realize
potential benefits and mitigate impacts of
mining. This sheet also provides menus of
possible indicators that could be used to track
the status and trends of the WEF security
components as well as the potential mining
benefits and impact, and progress toward
necessary actions.
• Worksheet #9 – Mining Influence Diagram:
This worksheet is the same as the WEF
System Diagram Worksheet #4 and provides
a canvas to depict the specific influences
of mining development on the original WEF
security system.
Summary for Decision-Makers
• Worksheet #10 – Summary for Decision-
Makers: This worksheet compiles the
information from the previous worksheets into
a summary format. Show and hide buttons
enable users to select which information to
display.
5.3. INDICATOR MENUS FOR
TRACKING WEF SECURITY
WEFsat-Mining provides menus of example
indicators recommended in the literature for
tracking the various components of WEF security.
Many of these indicators were previously listed
in Section 4. Annex A provides a compilation of
these indicators organized according to the WEF
security framework used in this Resource Book
and in WEFsat-Mining.
Described across the various WEF security
components in Annex A are three different types
of indicators. The first are referred to as “state-of”
indicators. These indicators help track the state
of the various WEF security components over
time (i.e., water quality and quantity). These status
indicators are colour coded in black text.
A a second group of indicators are referred to as
“pressure” indicators. These pressure indicators
help track the sources of potential mining benefits
(i.e., number of mine jobs; average salary) and
impacts (i.e., tonnage of acid-generating waste
rock disposed; constituent concentrations in
tailings ponds). The “pressure” type indicators are
colour coded red in the composite table.
A third type of indicator presented in Annex A
is called “response” indicators. These response
indicators help track the types of and changes
in supporting infrastructure (built and natural)
and supporting institutions and policies. The
“response” type indicators are colour coded blue in
the table.
These example indicators can all be viewed in the
example menus in WEFsat-Mining. These menus
also allow users to input and save new indicators
that are specific to their own circumstances and
that may not yet be listed in the menus. This
feature in the tool is particularly important when
identifying indicators for the actions identified
to realize potential mining benefits or mitigate
impacts. These types of indicators represent a
fourth type of indicator that can be referred to
as “key performance indicators” or KPIs. Such
indicators describe progress in the implementation
of specific actions (i.e., job training programs or
tailing effluent water treatment).
6. ENGAGEMENT PRACTICES FOR
INVESTING IN A WEF-SECURE
FUTURE

C ommunity engagement is the foundation

for investing in a WEF-secure future. This
section provides an overview of stakeholder
engagement practices in a mining sustainable
development and outlines a specific participatory
process for creating a Regional Landscape
Investment and Risk Management Strategy for
Water, Energy and Food Security.

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6. Engagement Practices for Investing in a WEF-Secure Future
6.1. OVERVIEW OF STAKEHOLDER
ENGAGEMENT PRACTICES IN A
MINING CONTEXT
Mining companies can have a role in improving
the capacity of communities to engage with
governance, policy and private sector decision-
makers and enhancing their representation
within negotiations and ongoing development
assessment and planning processes. The
governance institutions and mechanisms of
communities can be enhanced by helping
to ensure greater citizen participation into
the assessment of problematic issues and
opportunities. Further, the power of these
individuals and communities can be enhanced
within negotiations with governments and the
private sector, to assist them in bringing greater
influence to policies, and gain a role in the
planning and control of development activities in
the region.
Because mining companies often have a
significant influence on the governance of nation
states—and governments have a role in ensuring
both that the policy landscape is conducive to
attracting mining investments and respects the
interests of local communities—mining companies
can strive to enhance the participation of under-
represented groups in public and private policy
decisions. A community’s ability to participate
in decision-making processes relating to mine
development is often impeded by knowledge gaps.
Capacity building (such as providing funding
for enabling communities to afford independent
advisers, travel and meeting costs, legal and
negotiations training, and covering the costs of a
lead negotiator) may be required to ensure that
the community has the ability to participate in
negotiations with the mining company (ICMM,
2010b). Furthermore, the representation of
minority groups and local communities within
public policies and political discourse can be
enhanced through the concerted efforts of mining
companies.
Engagement with communities is a process that
is in continuous development throughout the
life cycle of the mining project. A high level of
engagement with communities that are affected
by mining helps to ensure that these stakeholders
have meaningful opportunities to have their
views taken into account in relation to planning
and decision making for these projects or related
activities that have a significant impact on their
lives. These processes should be characterized by
two-way communications and depend on good
faith from both companies and communities.
Successful engagements are those that allow both
parties to maximize benefits along parameters of
shared interests.
Photo: Daniella Echeverría

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6. Engagement Practices for Investing in a WEF-Secure Future

STAGE PRACTISES
• Identify and prioritize who to engage with
Plan • Understand community concerns and identify pressing issues
• Allocate sufficient time, resources, skills, and staff capacity
• Understanding the purpose of engagement and desired outcomes
Set Goals • Aim to be inclusive
• Aim for mutual benefits
• Use a variety of informal and formal engagement techniques chosen to suit the context
• Communicate the purpose of engagement early
Engage • Communicate candidly, effectively, openly, honestly
• Share evidence-based knowledge and information
• Record and document the process
• Report to stakeholders on outcomes of engagement
Reflect/ improve • Report to own organization on process (for learning) and outcomes (for staff engagement)
• Make improvements

Table 28. Best Practices for Stakeholder Engagement

Source: Shift (2013).

Photo: Dimple Roy

 EXPLORATION DEVELOPMENT OPERATION CLOSURE

7-10 YEARS 5-10 YEARS 5-30 YEARS 2-10 YEARS

Maximizing contributions to sustainable development throughout the project life cycle

Discussion and negotiations
to access land, identify sites
of cultural importance, provide
communities with information
on the project timelines and
activities.
Further discussion and
negotiation to ensure ongoing
permission to access land,
include the community in
baseline studies, and to
convey information about
project development.
Understand and address
community concerns.
Develop tools to listen and
respond to community
concerns and to monitor
the implementation of any
negotiated agreements.
Involve external stakeholders
in post-mine land use
planning.
Communicate a timetable for
closure.
Liaise with government

Manage expectations and Establish consultative forums Participate in consultative Departments to reduce the
address community concerns. and structures. groups and forums. impacts of closure.

Consider negotiating a formal
agreement.
Understand and address Deal with anxiety and
community concerns about uncertainty in the community
large-scale development. regarding closure and possible
unemployment.
Manage community
expectations in regards
to employment and other
opportunities.

Liaise with neighbours to

manage amenity and access
issues.

Consider negotiating a formal

agreement.

Table 29. Engagement of Communities throughout the Mine’s Life Cycle

Source: Adapted from Shift (2013).

Adequate engagement processes ensure that,
at a minimum, human rights infringements are
prevented, and that important measures are
put in place so that the community’s needs can
best be met within the context of the particular
determinants of their livelihoods and well-being
in the long-run. From the perspective of mining
companies, effective engagement processes also
allow them to manage the risk of opposition to
the mine, and also serves as a way to minimize
conflicts with local communities.
Some engagement processes result in the
negotiation of community development
agreements that formally define the relationship
and obligations of the mining company with
relevant communities. These can take various
forms such as Impact Benefit Agreements,
Partnership Agreements, Community Development
Initiatives, Social Trust Funds, Empowerment
Agreements and Landowner Agreements.

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6. Engagement Practices for Investing in a WEF-Secure Future

6.2. ENGAGEMENT USING “THE 7
QUESTIONS TO SUSTAINABILITY”
The Seven Questions to Sustainability (7QS)
Assessment Framework was created in 2004. It
was motivated by a desire to apply the ideas of
sustainability in a practical way on the ground—
in a way that is meaningful to explorer, mine
manager, mill superintendent, community leader
or public interest group. To address this challenge,
IISD through the Mining, Minerals and Sustainable
Development (MMSD) initiative in North America
convened a work group of 35 individuals
representing a broad range of interests and
charged them with developing a set of practical
principles, criteria and/or indicators that could be
used to guide or test mining/minerals activities
in terms of their compatibility with concepts of
sustainability.
Work on this front began with a review of 10
recent initiatives from government, the mining
industry, non-government organizations,
indigenous people and the financial services
sector. After significant deliberation, seven topics
were identified that were deemed essential for
consideration. For each of these, a question was
crafted to be applied to any given project or
operation.
From the 7QS falls a hierarchy of objectives,
indicators and specific metrics. Simultaneously,
the starting point for assessing the degree of
progress is provided by an “ideal answer” to
the initial question. In this way a single, initial
motivating question—is the net contribution to
sustainability positive or negative over the long
term?—cascades into progressively more detailed
elements that can be tailored to the project or
operation being assessed.

Figure 17. The Seven Questions to Sustainability – How to Assess the Contribution of Mining and Minerals Activities
Source: IISD (2002)
Photo: Dimple Roy

IISD Resource Book | 98

6. Engagement Practices for Investing in a WEF-Secure Future
The Tahltan Mining Symposium was one
application of the 7QS framework. The symposium
was convened by the Tahltan First Nation and
brought together 28 Tahltan representatives and
nine from industry and government. Its purpose
was to: (1) review the relationship between the
Tahltan people, their land and the mining industry;
and (2) build a strategy to guide that relationship
in the future. Seeking a win–win outcome and
guided by the 7QS assessment template, the
38 participants considered past, present and
potential future conditions as a foundation for
ensuring positive outcomes for the Tahltan people
and their territory in the years to come. The aim of
the resulting strategy was to:
1. Send a signal that the Tahltan people are
supportive of mining and mineral activity on
their land under conditions that such activities
respect Tahltan concerns and lead to a fair
distribution of costs, benefits and risks to
implicated parties.
2. Facilitate Tahltan participation in mining
and mineral activity, not only through direct
and indirect employment, but also in terms
of overall management/co-management as
well as the broad perspective of seeing a fair
distribution (considering all participating
interests) of all benefits, costs and risks.
3. Ensure that the broad range of concerns
raised in the 7QS are addressed, in particular
the health/social/cultural and environmental
implications of mining/mineral activity.
4. Ensure that in the future, mining and mineral
activity in Tahltan traditional territory is
a win–win for all implicated interests: the
Tahltan people, mining/mineral interests,
government and others.
Out of Respect, the symposium report,
describes the process and documents of the
resulting strategy (IISD, 2004). It serves to
effectively demonstrate the application of the
7QS assessment approach while facilitating a
constructive and practical way forward for the
Tahltan people.
6.3. CREATING A REGIONAL
LANDSCAPE INVESTMENT AND
RISK MANAGEMENT STRATEGY
FOR WATER, ENERGY AND FOOD
SECURITY
In its 2013 report, The Water-Energy-Food
Security Nexus, IISD set out to create a practical
planning and decision-support framework for
landscape investment and risk management
in WEF security (Bizikova et al., 2013). A
participatory scenario planning process was
laid out to enable key stakeholders in a region
to deliberate over the state of WEF security,
envision a desired future, and create a pragmatic
investment plan for achieving WEF security.
The planning process consists of four main
stages as outlined in Figure 18. The assessment
of WEF benefits and impacts resulting from
mining as outlined in this document and in the
accompanying WEFsat-Mining represents the
first step in the first stage of the overall planning
process for regional WEF security. The sections
that follow provide an overview of the four main
planning stages for achieving a WEF-secure
future
6.3.1. STAGE 1: ASSESSING WEF
SECURITY
The process of bringing stakeholders together in
a watershed or other landscape-defined place
necessarily begins with an assessment and
discussion of the current status and trends of
key aspects of water, energy and food security.
Undertaking such an assessment requires a
clear picture of the system to be assessed; this
highlights the importance of the analytical
framework and tool developed in this report.

Figure 18. A Participatory Scenario Planning Process for Landscape
Investment and Risk Management in Water, Energy and Food Security
Source: Bizikova et al. (2013)
This stage also includes a broader historical
analysis to understand the regional landscape
with respect to how it has changed over time, as
well as why and how stakeholders have adapted to
change—and were drivers of change themselves—
in the context of WEF security issues.
A final task of this stage is to identify future risks
and opportunities in WEF security in the region.
This builds on the WEF status assessment and
historical analysis and takes a prospective view
of the key stresses of the past to assess their
potential to manifest as key risks of the future
(i.e., weather variability, population change, fiscal
crises, health pandemics). Existing projections
from the literature can be used as the basis for
this forward-looking assessment of risks.
6.3.2. STAGE 2: ENVISIONING
FUTURE LANDSCAPE SCENARIOS
The objective of this stage is to craft plausible
scenarios of the future as framed by the most
important and uncertain drivers of change in the
region. The starting point for doing so is building
a shared set of principles that can guide a more
refined articulation of a desired future for WEF
security and what benefits society can expect
from it. This does not require detailed elements
of the future landscape, such as a particular type
of energy system, types of water use, or sources
of nutrition; rather, we suggest participants
deliberate to describe the desired characteristics
of their landscape, such as efficient use of
resources. It is during this task that the notions
of excess natural capital (i.e., water and forests)
and social capital (i.e., water user groups, soil
conservation associations, etc.) are discussed as
hedges against future risks, as opposed to the
more traditional economic approach of conserving
enough resources to meet demand.
The plausible stories of the future provide the
context for participants to discuss actions for
ensuring WEF security. This is done by taking two
stances: one adaptive and one transformative
(Kahane, 2012). From an adaptive stance,
participants are asked what opportunities and
threats each scenario presents and what specific
strengths and weaknesses these illuminate.
From that information, adaptive actions can
be identified to leverage opportunities or
mitigate risks. From the transformative stance,
participants are empowered to shape the actual
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6. Engagement Practices for Investing in a WEF-Secure Future
realization of a given scenario and are asked
which future scenarios are better for community/
organization/business. Within this context,
participants can then deliberate prospective roles
and responsibilities in making the desired future
scenarios happen—essentially asking what does
the future need from each person/group? This task
provides a menu of robust actions (i.e., those that
make sense in most scenarios and involve mostly
no regrets) and those that are triggerable (i.e.,
those actions that make sense only for certain
situations and might need more information
before being implemented) (Swanson, Barg, Tyler,
& Venema, 2010). The shared understanding of a
desired future scenario (or elements thereof) and
menu of adaptive and transformative actions
provides the foundation for the next stage:
creating a practical investment strategy for the
future.
6.3.3. STAGE 2: ENVISIONING
FUTURE LANDSCAPE SCENARIOS
The purpose of this stage is to develop a
specific investment strategy for ensuring the
WEF security of the region or basin. This stage
involves multiple engagements with various
stakeholders as well as larger multistakeholder
meetings. Central to these engagements is a
shared, innovative and motivating story of a
future landscape than can deliver water, energy
and food security in a sustainable and resilient
manner. This requires taking the desired scenario
story from Stage 2 (or compiling desired elements
across several scenarios), branding it, and actively
communicating it across the region or basin. A
modality for active communication of the desired
future scenario is engaging more stakeholders
in various sectors to better understand
their adaptive and transformative roles and
responsibilities.
A key output of this stage is a regional investment
strategy and scaling mechanisms that can deliver
WEF security for the basin or region. This is a
shared document meant to represent a strategy
owned by the participants in the process, a
document that ideally is representative of the
aspirations of the basin and region as a whole. The
strategy is implementation-orientated in that the
adaptive and transformative actions are backed
by specific financial and policy mechanisms to
enable their implementation. The strategy must
present a comprehensive business case that
openly and transparently discusses risks and
mitigating/hedging actions that are built into
the strategy directly as specific forms of excess
natural and social capital. The strategy must
describe the implementation mechanisms that
are adaptive and transformative for the basin or
region as a whole.
6.3. STAGE 4: TRANSFORMING THE
SYSTEM
Transformation demands action, and action
requires communication—and lots of it. While the
very undertaking of the participatory scenario
planning tasks of Stages 1 through 3 is a form of
active communication in and of itself, a separate
communication plan is imperative, one that
can effectively market the investment strategy
and build the necessary public, financial and
policy support for scaling up actions. Experience
shows that significance of this task cannot
be overemphasized, though it is often poorly
executed.
One of the most important mechanisms for
implementation is the clear identification
of an organization or formal consortium of
organizations that is accountable for the
implementation of the investment strategy. While
it is certainly the case that action from a range
of stakeholders is necessary to implement the
plan, some defined entity must be identified as
the steward of the plan so that it can report on
progress to the broader public in a transparent
and accountable manner.
Adaptive management of a complex and
transformative process is fundamental to
successful implementation (Tomar & Swanson,
2009). This is because it is not possible to predict
what actions will work well (and which will not)
in dynamically commingled economic, social and
environmental systems. Therefore, a regular and
formal process of monitoring progress, learning
from successes and failures, and actively adapting
and improving performance is required to change
what is not working (and to abandon actions in
certain situations) and strengthen what is working
(Pintér et al., 2012).
The identification and monitoring of a suite of
outcome and output indicators, as put forth in this
document and the accompanying WEFsat-Mining
in the context of a specific development activity
(i.e., mining), and the continual and transparent
communication of this information, is a critical
part of the participatory planning process and
the adaptive management of implementation of
a broader regional investment strategy in WEF
security.
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7. Summary
7. SUMMARY

W ith the scarcity of mineral resources and

the influential nature of mining activities,
the creation of positive relationships between
companies and surrounding communities is
critical. Whereas mining developments have
historically been simplistically framed as an
important contributor to economic growth, with
potentially significant destructive effects on the
environment, the last several decades have seen
the emergence of a collaborative approach to
mining developments, and a greater understanding
of the diverse benefits and impacts of mining.
This resource book traces various initiatives to
incorporate and monitor sustainability in the
context of mining.
WEF security is presented as a tangible and
measurable way of operationalizing sustainable
development. Unfortunately, little progress has
been made to understand the effect of mining
on WEF security in communities. Through this
resource book, we examine the various attempts
of identifying, assessing and/or monitoring
components of WEF security in the context
of mining. We stress the need for robust and
inclusive indicators to understand and monitor
WEF security and, in a parallel effort, provide
a Microsoft Excel tool to assess and develop
indicators for this process.
This resource book provides information for
companies, communities and governments to
understand and monitor WEF linkages in the
context of mining developments
The WEF Security Assessment Framework
(Section 2.1), WEFsat-Mining (Section 5) described
in this document, and the broader Participatory
Planning Scenario Planning process (Section
6.3), provides a set of approaches and tools
adapted specifically for understanding and
planning for WEF security in the context of mining
development and operations. This resource book
is seen as a foundation for future landscape
investments for a WEF-secure future.

IISD Resource Book | 104

References

REFERENCES
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IISD Resource Book | 110

Annex A

ANNEX A.
(Black text = “state of” WEF indicators; Yellow = mining “pressure” indicators; Green = other “pressure” indicators; Blue = “response”
indicators).

EXAMPLE INDICATORS
WATER SECURITY ENERGY SECURITY FOOD SECURITY

ADB (2013): Water supply (%),
wastewater treatment (%);
hygiene (age-standardized
disability adjusted life years
per 100,000 people for the
incidence of diarrhea); nitrogen;
phosphorous; mercury; pesticides;
total suspended solids; potential
acidification; aquaculture;
organic loads; thermal impacts
from power plant cooling;
dam density; river network
fragmentation; agriculture
sector water stress; residency
time change downstream from
dams; non-native species; catch
pressure.
UN Water (2009): Precipitation;
Surface water actual;
Groundwater recharge; Water
quality (nitrate); Desalination
production.
AVAILABILITY
IEAE/IEA (2005): Proven
recoverable reserves; Total energy
production; Total estimated
resources; Energy imports; Total
primary energy supply; Stocks of
critical fuel (e.g., oil, gas, etc.).
Sovacool (2013): Total primary
energy supply per capita;
average reserve to production
ratio for the three primary fuels
(coal, natural gas and oil); Self-
sufficiency; share of renewable
in total primary energy supply;
years of energy reserves left.
FAO (2014): Utilization of total
hydropower capacity; ratio of
hydropower to total energy
supply; total dam capacity
(national); primary production
of renewable energy; transport
energy intensities; bioethanol and
UN Water (2009): Threatened
freshwater species.
Parris et al. (2002): # of food
emergencies vs. food-water
vulnerability x capacity.
MOFN (2009): Yield (kg/
ha); Number of farmers with
certificates; Area certified; % of
farmers renting out land; % of
farmers renting in land.
Aurino (2014): Dietary energy
supply; Share of dietary energy
supply from staples; Cereal yields;
Livestock production index; Food
imports; Meteorological data;
Fertilizer use; Pest management;
Nutrition programs.
Kaaria et al. (2012): Food
imports; Rainfall anomaly and

biodiesel production; renewable differences; Seasonal rainfall

SOURCES

Aurino (2014): % population with energy share in national energy forecast (medium-term climate
access to improved water source; and electricity generation; % outlook); Normalized difference
% population with access to of increased access to modern vegetation index (NDVI); El Niño
improved sanitation. energy services due to bioenergy; Southern; Oscillation (ENSO);
% renewable energy/ total Inundation and floods; Cyclones,
GRI (n.d.): Identity, size, protected energy; woodfuel production hurricanes and earthquakes;
status, and biodiversity value by volume and value; land use Pest / locust outbreak; Pasture
of water bodies and related and land-use change related to and water shortages; Livestock
habitats significantly affected bioenergy feedstock production; diseases / death.
by the reporting organization’s % land used for new bioenergy
discharges of water and runoff; production; bioethanol and FAO (2014): Livestock total
Total water discharge by quality biodiesel production; pump price per hectare of agricultural
and destination; Total water for gasoline and diesel; total area (livestock/ ha); bacterial
withdrawal by source; Water jobs in bioenergy sector; change numbers and the presence
sources significantly affected by in forest area over the last 10 of coliform organisms; feed-
withdrawal of water; Percentage years as a % of total forest area; water productivity and feed
and total volume of water primary production of renewable conversion efficiency; change
recycled and reused; Total number energy. in freshwater fish production
and volume of significant spills. (aquaculture and capture/yr);
number and % of population that
Azapagic (2004): Liquid is undernourished; household
effluents; Total volume of water dietary diversity and number
discharged into waterways; of meals per day; % of the
Total volume of tailings and cultivated area equipped for
disposal methods; Percentage of irrigation; value of irrigated
permitted sites causing output as share of total
downstream and/or underground
water quality problems relative
to the total number of permitted
sites; Describe any measures
put in place to prevent acid
main drainage, if applicable;
Describe any measures put in
place to prevent tailings dam(s)
failure; Breakdown of substances
discharged with liquid effluents;
Percentage of total water reused
(e.g., cooling, waste and rain
water) relative to the total water
withdrawn for source.
FAO (2014): Sources of drinking
water (piped water, well water);
groundwater quality; salinity
of groundwater; desalinated
water produced annually;
contaminant discharges in
liquid effluents from energy
systems; oil discharges into
coastal waters; independence
from imported water and goods;
% water distribution losses
by water utilities; pollutant
loadings attributable to fertilizer
and pesticide application for
bioenergy feedstock production;
water pollution as % of BOD
emissions; levels of ph; levels
of alkalinity; nitrogen and
phosphorous concentration;
precipitation in volume; internal
renewable water resources;
total actual renewable water
resources; total actual renewable
water resources per capita;
actual renewable groundwater
resources; actual groundwater
entering and leaving the country;
treated municipal wastewater;
desalinated water production;
runoff co-efficient; net recharge
rate of groundwater; erosion
rate or sediment load in river/
upstream drainage area;
renewable water resources per
capita (m3) adjusted by HDI;
relative social water stress index;
total exploitable water resources
disagreggated by total regular
and irregular renewable surface
groundwater; population affected
by waterborne disease.
SDSN (2015): Proportion of total
water resources used (MDG
Indicator); BOD.
agricultural output; value of
irrigated output as multiple
of value of rain-fed output; %
freshwater withdrawal as %
total actual renewable water
withdrawal; total groundwater
abstraction/exploitable
groundwater; brackish/saline
groundwater at shallow and
intermediate depths; area
salinized by irrigation of total
harvested irrigated crop
area (ha); % salinized soils
by irrigation/arable land; %
area equipped for full control
surface irrigation drained; use
of agricultural pesticides and
fertilizers (nitrogen, phosphate,
potash); share of major ions,
metals, nutrients, organic matter
and bacteria in watershed;
concentration of nitrogen,
ammonia and phosphorous;
concentration of antibiotics in
watershed; direct use of treated
municipal wastewater for
irrigation purposes/total treated
municipal waste water; direct use
of agricultural drainage water;
produced municipal wastewater;
cereal import dependency
ratio; depth of food deficit;
precipitation variability; total
agricultural water managed
area. Total area of agriculture;
% area equipped for irrigation
actually irrigated; area equipped
for irrigation by type of irrigation
(surface, sprinkler, localized);
area that is potentially irrigable;
average value of food production;
average dietary energy supply
adequacy; import quantity index
of agricultural products; change
in cropland use; % agricultural
land classified as having
moderate to severe water erosion
or wind risk; economic value
of food products/ reduction of
use of non-renewable energy in
agriculture; prevalence of food
inadequacy; cropland per gross
production value of agriculture.
SDSN (2015): Proportion of
population below minimum level
of dietary energy consumption
(MDG Indicator); Proportion of
population with shortfalls of any
one of the following essential
micronutrients: iron, zinc, iodine,
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Annex A

vitamin A, folate, and vitamin B12

ADB (2013): Relative water
consumption compared to
supply; productivity of irrigated
agriculture; independence from
imported water and goods;
financial value of industrial
goods relative to industrial water
withdrawal; consumption rate
(net virtual water consumed
relative to water withdrawn for
industry).
UN Water (2009): Irrigation area;
Total water withdrawals; Water
demand per sector; Changes in
agricultural water productivity;
Change in hydropower
Aurino (2014): Investment in
water and sanitation.
FAO (2014): % annual freshwater
withdrawals by sector; per capita
renewable water resources;
groundwater abstraction/
exploitable groundwater;
USE AND UTILIZATION
IEAE/IEA (2005): Energy use
(total primary energy supply, total
final consumption and electricity
use); Critical fuel consumption;
Total population; Energy use
in industrial sector and by
manufacturing branch (and value
added); Energy use in agricultural
sector (and value added); Energy
use in service/commercial sector
(and value added); Energy use
in households and by key end
use; Number of households, floor
area, persons per household,
appliance ownership; Energy use
in passenger travel and freight
sectors and by mode; Passenger-
km travel and tonne-km freight
and by mode.
Sovacool (2013): Annual value of
energy exports.
GRI (n.d.): Direct energy
consumption by primary
– indicator to be developed
MFAN (2011): % population
malnourished; % children under
5 years malnourished; % child
mortality under 5 years; % of
population meeting energy
requirements; % eating 3 meals/
day; Average energy intake; %
households being food secure all
year; Number of months per year
that households declare being
food secure; On-farm added
value; Off-farm added value.
Aurino (2014): Prevalence of
undernourishment; Perceived
food insecurity; Under 5
mortality rate; Prevalence of
stunting; Prevalence of wasting;
prevalence of malnourished
women; Prevalence of children
receiving minimum acceptable
diet; Women dietary diversity
index; Vitamin A supplementation
coverage rate; Consumption
of iodized salt; Prevalence of

energy source; Indirect energy anemia.

median time to water; cooling
water required for conventional
power plants; total hydropower
capacity; ratio hydropower/
total energy supply; area
equipped for power irrigation;
% of area that is equipped
for irrigation; productivity
of irrigated agriculture; area
equipped for irrigation drained;
% total cultivated area drained;
% total area equipped for full
control surface irrigation drained;
consumption rate of water;
cubic metres of water used per
unit of value added by sector;
water withdrawn for processing
feedstock and bioenergy; annual
freshwater withdrawals by
sector; Total water withdrawal
(km2/year) by agriculture,
industry and municipality;
agricultural, industrial and
municipal withdrawals as %
total water withdrawal; %
investment in irrigation/total
public spending; desalinated
water used for irrigation (km2/
yr); total freshwater withdrawals
by irrigated agriculture; surface
and groundwater withdrawals for
agriculture as % total renewable
consumption by primary source;
Energy saved due to conservation Kaaria et al. (2012): Migration
and efficiency improvements; patterns.
Initiatives to provide energy-
efficient or renewable energy SDSN (2015): Crop yield gap
based products and services, (actual yield as % of attainable
and reductions in energy yield).
requirements as a result of these
initiatives; Initiatives to reduce
indirect energy consumption and
reductions achieved.
Azapagic (2004): Breakdown
by type of the amount of the
primary energy used (including
natural gas, diesel, LPG, petrol
and other fuels); Breakdown
by type of the amount of the
secondary energy (electricity
and heat) used and exported;
Energy from renewable sources
used and exported; Total primary
and secondary energy used;
Percentage of renewable energy
used relative to total energy
consumption.
FAO (2014): % households
without electricity or commercial
energy; % household income
spent on fuel and electricity;
% population with access to
electricity; energy use per capita;
water resources; agricultural
water security index.
SDSN (2015): Percentage of rural
population using basic drinking
water (modified MDG Indicator);
Proportion of rural population
using basic sanitation services
(modified MDG Indicator);
Proportion of the population
using an improved water source.
% area equipped for irrigation
that is power irrigated; %
energy for transporting water
for agriculture; utilization of
total hydropower capacity;
ratio of hydropower to total
energy supply; household energy
intensity; fossil fuel energy
consumption; net annual rates
of conversion between land-
use types caused directly by
bioenergy feedstock production;
energy used in agriculture
and forestry; agricultural
machinery, tractors in use in
agriculture; direct on-farm
energy consumption; direct use
of fossil fuel energy in agriculture
per unit value output; energy for
power irrigation in agriculture per
agricultural production; energy
consumed in fisheries per fish
product production; share of
household income spent on fuel
and electricity; household energy
use for each income group and
corresponding fuel mix; reduction
of food loss/amount of energy
used for food processing; forest
area damaged by human activity:
forest operations and other; %
population using solid fuels; %
households using traditional
fuels (disaggregated by fuel);
bioenergy used to expand access
to modern energy services;
total volume of removals from
forests; woodfuel from forests in
volume; MEPI Index; energy use
(kg oil equivalent) per USD1,000
GDP; change in yield/amount of
modern energy used for farming;
agricultural energy intensities;
energy used in agriculture per
gross agriculture production;
direct on-farm energy
consumption, per agricultural
produce; % renewable energy
used in agriculture as a
proportion of total energy used in
agriculture.
SDSN (2015): Share of the
population with access to modern
cooking solutions (%); Share of
the population with access to
reliable electricity (%); Share of
households without electricity
or other modern energy services;
Percentage of population using
solid fuels for cooking.
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Annex A
PROCESSING
ADB (2013): Resilience
(percentage of renewable water
resources stored in large dams).
STORAGE
FAO (2014): % renewable water
stored in large dams; total dam
capacity; total dam capacity per
capita; water storage capacity
per person.
ADB (2013): Access to piped
water supply (%); access to
improved sanitation (%).
UN-Water (2009): Population
with access to improved water
sources/ sanitation; Population
connected to drinking water/
sewage.
FAO (2014): % people with
improved water access (piped
DISTRIBUTION
water); access to improved
sanitation; % improved sanitation
facilities; investment in water
sanitation; rural population
with access to water supply;
% population with access to
an improved sanitation facility;
% population with access to
improved water source (urban
and rural); population affected
by waterborne disease; %
population using improved water
technologies and sanitation
facilities; average household
water usage/day; water within 15
minutes; median time to water.
FAO (2014): % water expenditure
as total of household expenditure;
global corruption report in the
water sector.
MARKETS
Aurino (2014): Infrastructure
(storage facilities).
Kaaria et al. (2012): Strategic
food reserves.
IEAE/IEA (2005): Households (or
population) without electricity
or commercial energy, or heavily
dependent on non-commercial
energy.
Sovacool (2013): % population
with high-quality connections
to the grid; % electricity
transmission and distribution
losses.
FAO (2014): % households
without electricity or commercial
energy, or heavily dependent
on non-commercial energy;
% households with access to
modern cooking energy.
IEAE/IEA (2005): Energy prices MOFN (2009): % increase in
(with and without tax/subsidy). food price; Food price relative to
wages; Price difference producers
Sovacool (2013): Stability of (rural)/consumers (urban)
electricity prices; retail price of
gasoline/petrol; Per capita energy Aurino (2014): Relative level of
subisidies. consumer prices; Food prices
volatility;
FAO (2014): End-use energy
prices by fuel and sector; Kaaria et al. (2012): Growth rate;
economic value of agricultural Inflation rate; External balance;
products; net energy imports; Consumer price index (CPI) i.e.
pump price of gasoline and diesel real prices, cost of food basket;
(USD/litre). Price stabilization measures;
FAO (2014): Domestic food
price index; domestic food price
index of key food and non-food
commodities; domestic food
price volatility; per capita food
production variability; per capita
 supply variability; average value
of food production; share of
food expenditure for the poor;
domestic food price index; depth
of food deficit; domestic food
price volatility; per capita food
production variability; per capita
food supply variability.
IEAE/IEA (2005): Household income spent on fuel and electricity; Household income (total and poorest
20% of population); Energy use per household for each income group (quintiles); Household income for
each income group (quintiles); Corresponding fuel mix for each income group (quintiles).

MOFN (2009): % living above/below poverty threshold; Average annual income; Average annual farm
income.

Aurino (2014): Share of food expenditure in total expenditure for the 20% poorest households;
Employment-to-population ratio.

Kaaria et al. (2012): Remittances; Access to economic and productive resources.

GRI (n.d.): Total workforce by employment type, employment contract, and region; Total number and
rate of employee turnover by age group, gender, and region; Benefits provided to full-time employees
that are not provided to temporary or part-time employees, by major operations; Coverage of the
PURCHASING POWER (livelihood income, remittances, credit)

organization’s defined benefit plan obligations; Range of ratios of standard entry-level wage compared
to local minimum wage at significant locations of operation; Policy, practices, and proportion of spending
on locally based suppliers at significant locations of operation; Composition of governance bodies and
breakdown of employees per category according to gender, age group, minority group membership,
and other indicators of diversity; Ratio of basic salary of men to women by employee category; Total
number of incidents of discrimination and actions taken; Procedures for local hiring and proportion of
senior management hired from the local community at locations of significant operation; Percentage of
employees covered by collective bargaining agreements; Minimum notice period(s) regarding operational
changes, including whether it is specified in collective agreements; Number of strikes and lockouts
exceeding one week’s duration, by country; Operations identified in which the right to exercise freedom
ACCESS

of association and collective bargaining may be at significant risk, and actions taken to support these
rights; Operations identified as having significant risk for incidents of child labour, and measures taken to
contribute to the elimination of child labour; Operations identified as having significant risk for incidents
of forced or compulsory labour, and measures to contribute to the
elimination of forced or compulsory labour; Number (and percentage) or company operating sites where
artisanal and small-scale mining (ASM) takes place on, or adjacent to, the site; the associated risks and
the actions taken to manage and mitigate these risks; Total number of operations taking place in or
adjacent to Indigenous Peoples’ territories, and number and percentage of operations or sites where there
are formal agreements with Indigenous Peoples’ communities.

Azapagic (2004): Number of direct employees (on company payroll); Number of indirect employees
(e.g. contractors, consultants) expressed as full-time equivalents; and Percentage of indirect relative to
direct jobs; Net employment creation expressed as percentage contribution to employment in a region or
country; Employee turnover expressed as percentage of employees leaving company relative to the total
number of new employee; Total payroll costs and benefits (including pension and redundancy payments)
broken down by region or country; Total costs of employment as percentage of net sales; Health, pension
and other benefits and redundancy packages provided to employees as percentage of total employment
costs; Ratio of lowest wage to national legal minimum, breakdown by country; Percentage of contracts
that are paid in accordance with agreed terms, with an explanation, if appropriate; Percentage of local
suppliers, relative to the total number of suppliers; Percentage of women employed relative to the total
number of employees; Percentage of women in senior executive and senior and middle management
ranks; Percentage of ethnic minorities employed relative to the total number of employees, with an
explanation of how representative that is of the regional or national population makeup; Percentage
of ethnic minorities in senior executive and senior and middle management ranks; Percentage of sites
with “fly-in, fly-out” operations relative to the total number of sites; Percentage of employees sourced
from local communities relative to the total number of employees; Percentage of employees that are
shareholders in the company; Ranking of the company as an employer in internal surveys; Policy and

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Annex A

procedures involving consultation and negotiation with employees over changes in the company (e.g.
restructuring, redundancies etc.); Statement on whether the company conforms with the International
Labour Organization Conventions on the Right to Organize (nos. 87 & 98); Specify any verified incidences
of non-compliance with child labour national and international laws; Summary of the policy to prevent
forced and compulsory labour as specified in ILO Convention No. 29, Article 2; Percentage of quarries/
mines on sites sacred for indigenous people relative to the total number of quarries/mines.

Woodley et al. (2009): % persons/youth that leave the community on a seasonal, semi-permanent (for
at least 2 years ) or permanent (5 years of more) basis for employment/economic/subsistence or other
reasons.
Aurino (2014): Aid per capita (tons/person); Social protection expenditure (% of GDP).
AID (direct provision, safety nets,

Kaaria et al. (2012): Sector support and social protection measures; Safety net programs; Assistance
provided (food, cash, health, etc.).

GRI (n.d.): Direct economic value generated and distributed, including revenues, operating costs,
subsidies)

employee compensation, donations and other community investments, retained earnings, and payments
to capital providers and governments.

Azapagic (2004): Percentage of revenues that are redistributed to local communities from the relevant
areas of operation, relative to the net sales; Investments into community projects (e.g. schools, hospitals,
infrastructure) as percentage of net sales; Specify any community projects in which the company has
been involved.

FAO (2014): Share of food expenditure for the poor.

Sovacool (2013): Households dependent on traditional fuels.
ROCESSING (household and communal water sources, off-

MOFN (2009): % households producing sufficient food; Staple food production; Household buffer food
stock, above a minimum stock; Household buffer capital or assets.
grid power, individual and communal gardens)

Woodley et al. (2009): % lands, territories and subsistence resources used traditionally by Indigenous
Peoples for subsistence and food production to which IPs still have full access; % lands, territories and
natural resources used traditionally for food production (farming, fishing, hunting, gathering, herding)
currently being used by Indigenous Peoples compared to benchmarks established in the past; %
traditional subsistence food resources (plant and animal) which are intact, viable, productive, healthy
and free from contamination (toxins, GMOs etc.); Changes in monthly/yearly harvests of food plants
and animals used traditionally and reasons for any decrease; Number of traditional food plants and
animals which have been declared endangered, have decreased in numbers, and/or have disappeared;
% community households which use traditional/ subsistence foods as a regular part of their diet,
compared to an agreed upon number of years in the past (5, 10 or 25 depending on community history); %
community members who know traditional methods for food gathering/production/preparation including
the traditional language, songs, dances, stories and ceremonies associated with these practices; %
indigenous youth in a community/tribe/nation who perceive or express that their traditional foods and
subsistence practices as relevant in today’s world.

GRI (n.d.): Sites where resettlements took place, the number of households resettled in each, and how
their livelihoods were affected in the process.

Azapagic (2004): Number of proposed developments that require resettlement of communities, with a
description, if applicable.
BUILT
INFRASTRUCTURE

Aurino (2014): Road density.

TRANSPORTATION
SUPPORTING

UNDESA (2007): Proportion of urban households with access to reliable public transportation; Access to
all-weather road (% access within [x] km distance to road).

FAO (2014): Energy associated with transport of a national food basket

 ADB (2013): Hard coping capacities (e.g., telecommunications development)

COMMUNICATION
SDSN (2015): Number of internet users per population; Fixed telephone lines per 100 population; Mobile
cellular telephone subscribers per 100 population

ADB (2013): Drainage (measured as the extent of economic damage caused by floods and storms)
DRAINAGE

ADB (2013): Wastewater treatment (%)

IEAE/IEA (2005): Amount of solid waste; Amount of solid waste properly disposed of; Total amount
of solid waste; Amount of radioactive waste (cumulative for a selected period of time); Amount of
radioactive waste awaiting disposal; Total volume of radioactive waste; Contaminant discharges in liquid
effluents.

Sovacool (2013): Per capita sulfur dioxide emissions; Per capita energy-related CO2 emissions.
SANITATION AND WASTE

GRI (n.d.): Total weight of waste by type and disposal method; Total amounts of overburden, rock, tailings,
and sludges and their associated risks; Weight of transported, imported, exported, or treated waste
deemed hazardous under the terms of the Basel Convention Annex I, II, III, and VIII, and percentage of
transported waste shipped internationally.

e3Plus: Fuels and Petroleum Products; Use of Drums and Other Containers; Refuelling Operations;
Transporting Fuel and Petroleum Products; Handling Fuels and Oils on Water; Propane and Other Liquefied
Petroleum Gases; Transport and Storage of Explosives; Handling of Fuses and Blasting Caps; Blasting;
Solvents and Paints; Drilling Fluids; Pesticides and Herbicides; Acids and Bases; Antifreeze.

Azapagic (2004): Total hazardous and non-hazardous solid waste and breakdown by type and
description of disposal methods; Percentage of permitted sites that have a problem of land
contamination relative to the total number of permitted sites.

IRMA: Land Application Disposal (LAD).

FAO (2014): Size of “animal waste to energy” systems in the country.

NATURAL

ADB (2013): Wetland disconnection; soil salinization.

water purification, biological control, pollination,
water, fuel and food sources: erosion control,
Ecosystem goods and services other than

IEAE/IEA (2005): GHG emissions from energy production and use; Concentrations of pollutants in air;
Air pollutant emissions; Affected soil area; Critical load; Forest area at two different times; Biomass
utilization.
storm protection, air quality

Sovacool (2013): Forest as a percent of land area.

MOFN (2009): Farmer use of inputs.

GRI (n.d.): Total direct and indirect greenhouse gas emissions by weight; Other relevant indirect
greenhouse gas emissions by weight; Initiatives to reduce greenhouse gas emissions and reductions
achieved; Emissions of ozone-depleting substances by weight; NO, SO, and other significant air emissions
by type and weight.

Azapagic (2004): Emissions of greenhouse gases (CO2, CH4, N2O, HFCs, PFCs, SF6), breakdown by
substance; Equivalent number of fully grown trees that would be required for sequestration of the total
CO2 emissions; The amount of CO2 emissions that can (theoretically) be sequestered by the trees planted
by the company; Net emissions of CO2 (total CO2 emissions minus CO2 emissions potentially

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Annex A

sequestered by trees); Emissions of ozone-depleting substances, breakdown by substance; Emissions

of acid gases (NOx, SO2 and other), breakdown by substance; Toxic emissions (including heavy metals,
dioxins, crystalline silica and others), breakdown by substance; Other emissions - breakdown by
substance.

GRI (n.d.): Location and size of land owned, leased, managed in, or adjacent to, protected areas and
areas of high biodiversity value outside protected areas; Description of significant impacts of activities,
products, and services on biodiversity in protected areas and areas of high biodiversity value outside
protected areas; Amount of land (owned or leased, and managed for production activities or extractive
use) disturbed or rehabilitated; Habitats protected or restored; Strategies, current actions, and future
plans for managing impacts on biodiversity; The number and percentage of total sites identified as
requiring biodiversity management plans according to stated criteria, and the number (percentage) of
those sites with plans in place; Number of IUCN Red List species and national conservation list species
with habitats in areas affected by operations, by level of extinction risk; Number and percentage of
operations with closure plans.

Azapagic (2004): Description of the major impacts on biodiversity associated with company activities
and/or products and services in terrestrial, freshwater, and marine environments; Number of IUCN Red
List species with habitats in areas affected by operations; Description of the activities for habitat
protected or rehabilitation; Summary of the biodiversity policy; Number of sites rehabilitated; Total land
area rehabilitated; Percentage of the land area rehabilitated relative to the total land area occupied by
the closed mines/quarries, awaiting rehabilitation; Number of awards for rehabilitation and a summary,
if applicable; Number of sites officially designated for biological, recreational or other interest as a result
of rehabilitation; Net number of trees planted (after thinning and after subtracting any trees removed for
the extraction activities); Total area of permitted developments (quarries/mines and production facilities);
Total land area newly opened for extraction activities (including area for overburden storage and tailings);
Percentage of newly opened land area relative to total permitted developments.

e3 Plus: Erosion Control including minimizing disturbances, clearing of vegetation, soil conservation,
trenches and pits, managing soil on slopes, soil stabilization; Managing drainage and runoff; Vegetation
management; Controlling sediment.

UNDESA (2007): Fragmentation of identified key habitat; Protected areas overlay with biodiversity
(national level; Red List Index by country and major species group); Change in threat status of species
(This indicator is an index based on the number of species in each category of the IUCN Red List
(Least Concern, Near Threatened, Vulnerable, Endangered, Critically Endangered, Extinct in the Wild,
Extinct), and the number of species changing categories between assessments as a result of genuine
improvement or deterioration in status; Abundance of key species; share of forest area in total land area;
Land-use change; Land degradation (The share of land which due to natural processes or human activity
is no longer able to sustain properly an economic function and/or the original ecological function).

SDSN (2015): The marine trophic index (measures the change in mean trophic level of fisheries landings).
INSTITUTIONS
SUPPORTING INSTITUTIONS

BOARDS
UTILITY

Aurino (2014): Agriculture extension services.

ASSOCIATIONS
AND CO-OPS
USER
 Aurino (2014): Female adult literacy; Female enrolment rate, secondary; Education expenditure per capita.

GRI (n.d.): Average hours of training per year per employee by employee category; Programs for skills
management and lifelong learning that support the continued employability of employees and assist
EDUCATION AND TRAINING
them in managing career endings; Percentage of employees receiving regular performance and career
development reviews.

Azapagic (2004): Percentage of hours of training (excl. health and safety) relative to the total hours
worked (e.g., management, production, technical, administrative, cultural etc.); Number of employees that
are financially sponsored by the company for further education; Summary of programs to support the
continued employability of employees and to manage career endings; Investment in employee training
and education as percentage of net sales.

UN-Water (2009): Capacity development of government staff.

UNDESA (2007): The proportion of the adult population aged 15 years and over that is literate;
Proportion of children receiving at least one year of a quality pre-primary education program; Early Child
Development Index (ECDI); Primary completion rates for girls and boys.
OVERSIGHT
SAFETY

Sovacool (2013): Worldwide governance score.

ENFORCEMENT
AND SECURITY

Aurino (2014): Governance and civil security.

LAW

Kaaria et al. (2012): Number of small arms flow, number of incidents.

Woodley et al. (2009): Frequency of conflict over territory and natural resources, number of court cases
and disputes filed.
Sovacool (2013): Quality of energy information.
MONITORING &
REPORTING

Woodley et al. (2009): Number of consultations for program planning, implementation and evaluation
with community members and representatives by states, outside agencies or other entities.

IRMA: Water quality monitoring program; Water quality sampling; Water quality criteria and “trigger
levels”; Publication of water monitoring results.

POLICIES AND PLANS

UN-Water (2009): Water is mainstreamed in development policies; Formal involvement of stakeholder

group; Water resource issue assessment; Regulatory instruments and enforcement.
RESOURCE USE AND

Woodley et al. (2009): Number of active programs in Indigenous communities to restore plant or animal
food species and/or their habitats and measure the impacts; Number of development projects/proposals
ALLOCATION

from outside Indigenous communities that respect and uphold the rights of free prior informed consent,
self-determination and development.

Azapagic (2004): Summary of the policy for protection of land rights and for land compensation;
Summary of a Community Sustainable Development Plan to manage impacts on communities in areas
affected by its activities during the mine operation and post-closure; Summary of mine energy policy;
Summary of the policy for the closure and rehabilitation.

FAO (2014): Area of land/soils under sustainable management.

Woodley et al. (2009): Existence of and extent of participation in community-based discussions and
ADAPTATION
CHANGE
CLIMATE

decision making regarding the need and/or desirability for adapting traditional methods and food sources
to changing conditions.

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Annex A

Kaaria et al. (2012): Program and disaster management.

RISK MANAGEMENT
RECOVERY AND
e3Plus: Mine spill management including Inspections, Media, Response and Mitigation; Spill Kits; Spill
DISASTER

Report Form.

Azapagic (2004): Describe any measures put in place to prevent acid main drainage, if applicable;
Describe any measures put in place to prevent tailings dam(s) failure; Total fund for mine closure and
rehabilitation, including mitigating the post-closure environmental and social impacts.

Sovacool (2013): % gov expenditures on R&D compared to all other expenditures.

INNOVATION
R&D AND

Aurino (2014): Agriculture spending in R&D.

Woodley et al. (2009): Number of new culturally and environmentally sustainable technologies or
methods in use or under development for food production or related activities.
Kaaria et al. (2012): Regulation of exports and imports; Import tariffs; Number of IDPs, refugees and
OTHERS

returnees.
Annex A

©2015 The International Institute for Sustainable Development

Published by the International Institute for Sustainable Development.

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